TDI Podcast: ONLY Price Pays (#983)

29:18So you have to say, well, what is important to the market? Well, clearly the market has looked at the first ceasefire and that's where the market gapped up and really made this big run. Now we're correcting and it's coming down towards that level. So we look at that and say, now I don't look at it and say there's support, right? That's what people who get themselves in trouble with technical analysis do. I look at it and say, here's a level of potential support. It's a level of interest where there has previously been buyers. So let's see if they're there again. That is my cue to look to a shorter term timeframe and say, okay, now do I see any evidence that the buyers are actually gaining control?

30:00Or is it just free falling in through this level, which it's doing right now as we speak? Well, and the thing is that that brings us to a point that I think we need to state, I think, and not make light of this at all, because it is your catchphrase. It is like your bumper sticker. This is Brian Shannon's bumper sticker, actually. It's only price pays. And I think if you did have a bumper sticker, it would be that sticker, wouldn't it? I should, actually. I really should. I'll buy one. Let's get that. Let's do that. Let's do shirts with smiley faces and stuff. But the point of that is, and I think so simplistic yet elegant ties back into what you just said.

30:38It's suggested support. So if in fact it falls below, I know the answer. You could fill in the blank. If it falls below and if it's only price that pays and you are long, you then get out or reevaluate, right? Yes. Yes. Yeah. So it's the place, I call it a level of interest. A lot of people, and I think I've helped people, trained people on this. You know, people would say, hey, it's coming to support at the 20-day moving average or the 50-day moving average. And I'd say, it's coming into a level of interest. Let's see if there's actual support there. Let's let the market tell us. Don't just blindly stick your bids in at some level because it's a squiggly line on a chart.

31:20That's insane. Let's look at it and see what technical analysis really is. It's not about buying at the squiggly line. It's about evaluating supply and demand and saying who has control. Is there any evidence on that shorter term time frame that the sellers are slowing down? Is there any evidence that the shorts are starting to cover? is there sideline cash coming in and providing at least stability at this level? And I'm not talking about a stock like Micron coming in and bouncing$2 off of VWAP. And people say, there, it bounced from it. No, it probed it. Let's give it a few hours in here. Let's see if it actually does.

31:57You're not looking at every little reactionary move. You've got to wait for market structure to say, okay, now it looks safe and we have a place, hopefully, where there's a higher low that's been established on the shorter term timeframe that we can buy some strength and then set our stop below that low. So at least we have defined risk. Whereas if we're just buying on the dip, where do we put our stop? If it just, it doesn't make sense, right? Yeah, and you mentioned the art of technical analysis, but there's something that the three formats of investment styles have all in common. You have quantitative, which is filtering your scoring, finding out data, investing using some factoring process.

32:42There's fundamental analysis. I call it looking under the hood, right? Understanding what's going on with the actual meat and potatoes of the company, right? Understanding that and saying, well, is this a company I want to buy? Then there's technical. Technical has a set of rules. All of these are set on one word, which not because this is the Discipline Investor Podcast, but discipline. because you start getting around that and you start getting into that squishy mode of, well, I feel like it should bounce from here. Or, you know, I own that stock and I said I was going to sell it when it got below the VWAP, but you know what?

33:22I'm going to add some to it now and hold it because I really like the stock and I think it's overdone and everybody's wrong. That doesn't fit into your equation, does it, Brian? It doesn't. And if it does, hopefully I recognize it really quickly because I, you know, I still make the mistakes. We still do them. And I look at it and say, well, at least I recognize the mistake quickly and I can move on rather than compound it. You know, people, I would used to use the example of, you know, a stock would pull back to the 10 day moving average and you would maybe buy some there. And then it drops below that low and you don't sell.

33:55And you look at the 20 day moving average. You say, OK, well, it's going to hold the 20, but it slices through the 20. You're like, okay, well, I'll just give it down to the 50-day moving average. Now you're down 10%, 15%, 20%. And like, well, the 200-day moving average is still rising. And I'll actually add more down there. And now you're down 30 % in a stock that was supposed to be a swing trade that you were supposed to have a 2.5 % stop on. And it just becomes a disaster. So you've got to admit that mistake right away and just get the heck out of the way. Yeah. Just stay with whatever discipline.

34:29And one of the ways I found, and it's so simplistic, I've talked about it for years. I really haven't mentioned this in a while, but write things down. It's easier than ever now, right? You could put it into probably some kind of agent or pin GPT or something. Hey, this is what I'm doing. And even set a reminder for me and make sure I stay on discipline. I am certain you could turn your AI into a trading coach to make sure you stay on target, assuming you obey it, right? I was just thinking that. I was just thinking, well, some people are going to override it or, you know, shut that stupid thing off.

35:03What do they know? I'm doing my own thing here. So are there other, VWAP is something you talk about, write about, and really focused on. Are there other indicators that, or tools that you rely on most often? So for me, it is only price pay. So that's the most important thing. Sure. If a stock reports earnings and the stock is going down, like Micron, best earnings, you know, that the stock has ever had, just crazy, insane printing cash, the stock's down 35, 40 % from, you know, from that day. So a lot of people who don't understand the way that markets work, looking to go, this is insane. How could this be?

35:42These are, you know, the market doesn't make sense. So I do have my favorite, with a hands down, favorite indicator that I use from a swing trader's perspective, Andrew, is the five-day moving average. And I believe we've discussed this before, and it kind of ties into what you were talking about with the 65 minute timeframe, but the five day moving average on an intraday timeframe only. So I look at that. And if a stock is below a declining five day moving average, to me, it's guilty till proven innocent. It needs to heal at a minimum and see that five day moving average turn sideways and then start to turn higher before I'll consider buying it.

36:20I guarantee I will never buy the lows with that strategy, but what it does is prevents me the heartache of trying to pick the lows and seeing it drop 5%, 10%, 15%, 20%. So I'm waiting at those key levels. And the five day moving average is the best trend filter for swing trades. You know, it's funny. You mentioned that. You think you've mentioned that to me before. I think you and I have been chatting since 2008 or so. Give or take with, I think your first wonderful book that you wrote. And I remember, by the way, I'll just give you something that maybe never told you, but I remember when I first met you and you and I were both younger and we were starting out in this world of, what would we call it?

37:07We call blogging back then, maybe, I guess we were in this kind of world. I think we both knew Howard, of course. Howard Lindzen. Howard Lindzen. He was on the show actually very recently talking about the degenerate economy and all that. And all the good things that go along with it. He's an animated fellow. And, you know, I remember very distinctly when you wrote your first book, and I was so happy for you, seriously. Because I'm like, you know, this dude, he kind of was a writer, and I don't think you were like a professional investor at the time. And you came up with some great ideas, great functions, and really built that out through the social media world.

37:46Stock Twitch was one of the ones that was a big catalyst for you, I know. And so it was really great. I was really impressed by that in the beginning. Well, I don't know if people know this, but if they pick up that book and look at the back cover, you have an endorsement on the back page. I did. And I was very honored by that. Yeah. Good stuff. So fast forward to where we are today, a little bit older, much better looking, both of us. Let's be honest. I mean, let's just, we're not going to, let's not throw it out there. That's the facts. The facts are the facts. These are facts. So have you become a little bit more refined and minimalistic with your charts over the years?

38:22Or do you find yourself adding any more data? Because a lot of people have those charts. You've probably seen them with like 14 ,000 lines going around. They got the Fibonacci's. They got the various Fibonacci's, right? You got the time-based ones. You got the price-based ones. You got the retracements, the forward looks. You know, get that. Then you got your moving averages. You got like eight of them on there, also to colors. And then you put like trend lines, you got the trend lines going on and all that. You got the market profile from right to left. I don't even understand how that all works on a chart.

38:53But what have you done over the years? Have you become or changed anything? I have definitely simplified it, but I've actually had it pretty simple for the last five or six years. And that is I look at price, a few simple moving averages, and volume doesn't pay as big a role as people might think. I largely ignore volume truthfully, but to me, it's more about the volume weighted average price because it tells us specifically something useful about volume rather than, hey, that was big volume. That was low volume. Hey, we're down on low volume. So it doesn't count somehow. Some people think if your account's down, your account's down.

39:32It doesn't matter whether it's on big volume or low volume. I had a terrible day, but it was on low volume. I'm good. Right. I mean, it's true. Some people will feel that way. Yeah. They will bullshit themselves. Well, they'll be also like, everybody was down. So what's the big deal? Right. Really? Okay. Let's go with that. Okay. How long can that go on? But you know, it's interesting because, you know, you, you, you talk about volume and sticking that with the, uh, the weighted average price, right? So it's volume weighted average price. It reminds me of people that talk about like things like price earnings ratios in a total vacuum.

40:11Well, this is a price earnings ratio of 22. The market's multiple is 25. Yeah, but what does that have to do with anything? The fact is you want to use peg ratio. I'm good with that because now you're doing a comparative. Very similar to a volume weighted average price using price earnings to growth ratios. Okay, that gives me a little bit more of an understanding of what's happening from a fundamental standpoint. Or if you want to say, you know, this is a 24 in a healthcare industry that everybody else is trading on average at 16. Well, that's different because the healthcare probably shouldn't be compared to that.

40:43So I think that's the way I like to look at it is to understand how volume is on a relational basis to something that matters. So that's how I look at it. I agree. And what matters is how does the average person feel that's holding this stock? The average person that's holding this stock since that big catalyst of the April 8th original ceasefire, they're still feeling good about the market. But the NASDAQ has come down to that two times in the last month and a half, and the tests are becoming more frequent. And we're seeing lower highs in the NASDAQ. That tells me that the buyers are really kind of, you know, we're more the seesaw is kind of in the middle here.

41:27And if it goes the other way, there's going to be a lot of people who are on average losing money from that catalyst. And it's probably going to drop down to the year to date anchor, which is about 10 % lower. So about 7%. But either way, it just, they kind of give us guidelines to how the sentiment is, not the sentiment of what people say. Oh, I'm bullish. Okay. What does that mean? That means nothing. I'm bullish because I own it at 705. But if it breaks below 705, I have my stop and I'm no longer bullish. That tells me something about the crowd. If the crowd behavior is on average long, the NASDAQ from that catalyst, it's 701.

42:11Breaking below that 701 doesn't mean it's going to fall apart, but it means we're at a critical level here. And we've really got to start paying attention to price more carefully here. Earnings season is here. Now we're going to be look at, okay, it's more about the individual stocks. And that's where the risk is, but that's where the opportunity is. But is the market going to be favorable during this period? Right, because we have those times. The big words of the last number of months have been shrugs off. You know, the stock shrugged off this, it's shrugged off that. The market's shrugging off inflation, ceasefires, back on war, oil prices up.

42:48I mean, the whole shrug off thing, right? That's been - The wall of worry. The wall of worry. but this has been more of a shrug off. This has been a big, I mean, I see every time it's like, Mark, shrug off. It's like, now I'm like, wow, what happens when they don't shrug so much? I wonder about that. But you spend a lot of time on the equity side and we'll call it ETFs and sector-based because you do swing trading, et cetera. Where are you? I don't know if we've ever talked about this. Where are you in the options trading world? I do some options. I use them pretty strategically in that I want, If I like a company and maybe I'm not sure about their fundamentals or if their competitor is maybe coming out with something that might change them.

43:30To me, I use them opportunistically, directionally. So I buy calls and I buy puts. I don't do any options, you know, fancy. No iron condors or put spreads, nothing like that? No, nothing like that. No butterflies, none of that. It's a risk mitigation tool for me. And a lot of times I'll say it's a just-in-case position. So this setup isn't quite here yet, but there's favorable currents in their sector. And just in case something happens, just in case Trump says, hey, we're going back into the quantum names or whatever, we're giving them more money. So just in case something happens, I want to have a position on, but I don't want to experience maybe a 10 % down gap.

44:18Let's say it's a biotech stock. Right. So if it does gap down 10%, and if I've got$100 ,000 position, well, then I'm out 10 grand. Right. But if I could get some exposure using options for$1 ,500 and get 80 % of the upside, but I know in advance that my risk is that$1 ,500, to me, that's how I use them. So it's just, you know, it's just in case something big happens here. I want to have a position, but I don't want to be fully exposed, basically. Brian Shannon, I'm going to ask you something. I don't know if anybody's ever asked you this before. How do you feel about memorializing something in the world of technical analysis as you've done?

44:58Do you ever recognize that about yourself? I mean, why don't we just call it the Shannon? I want it to be called the Shannon Indicator. Not the BS Indicator. not the BS indicator. Okay. The Shannon indicator. And not the AH. No, but seriously, have you ever thought about that? The importance of that? I'm seriously, I'm not trying to, don't be too humble about this. Seriously. Have you ever thought about that? That you've actually created something like, like a chicken index, you know, that kind of, or, or, or Bollinger, you know, Bollinger, they've all, obviously VWAP was there before, but you've got into, you're in that world.

45:36Do you know that? Well, it's nice to hear. You know, my main goal for me is to make money in my account. That's my number one thing. My second goal is to help other people. I've made every mistake in the book. I've used all of the oscillators and indicators, moon cycles, you name it. I've looked at it. I've studied it. And that's why, going back to your question is how are my charts? They're stripped down. They're simple. It's price, volume, and time. Those are the only, and that's what the VWAP is. Only price pays, volume tells us the intensity, but it also tells us the psychology when we add it with that time component of since this event.

46:18So it tells us that psychology. So, you know, it's nice, it's good to hear that. But at the end of the day, you know, I'm in this business to make money and all the praise doesn't help me make money. It's nice to hear, but it's good to hear. This is important. And this is like you getting, not from me, but generally you're basically getting on the Wall Street Walk of Fame a tile. I'm honored by that. I really am. And I love getting feedback from customers or just people on Twitter saying, hey, you've really helped me a lot. You made that concept clear to me. I'm having my best year ever, things like that.

46:56Those are really nice to hear. But the good thing is they don't go to my head. Yeah, that's good. There's a balance in there, right? Yeah, that's good. You can't believe it all. I just want to say that to you. But here's a couple other questions I have. The other thing that you've brought out is kind of, I think, hard for a lot of people to understand. Number one. Number two, they don't know how to actually activate this on their charting stack. And by the way, what are you using right now? My main one is TC2000. TC2000. That's been around forever. Yeah. And by the way, very much either advanced or as simple as you want it to be.

47:37Well, I use it for two reasons. One, it's simple. And two, actually, the number one reason is I was using, what was it called? Realtek. I was using Realtek maybe about 12 years ago. And the people at TC2000, I got to know them. And they said, hey, Brian, we want you to use our software. I was like, yeah, you know, I'm really comfortable on this one. I said, I'll tell you what, though. if you can do this for me, I will switch and I will stay with you guys. And that was, if you can add a point and click anchored VWAP to your charts and they did it. And if you go on there today and hover over the little icon, it says anchored VWAP by Alpha Trends.

48:16So they're the first people who made the anchored VWAP possible on software. That's why it's on TradingView. That's why it's on, you know, whatever interactive broker, whatever broker you use, if they have it, it's because it started with TC 2000 and I'll forever be loyal to them for doing that. So talk about act, you know, someone who deserves credit is those guys for doing that. Sure. I made it easy to use. So the other thing though is you've talked to me about this before. Cause I asked you about this cause I saw you writing about like, uh, excuse me, Brian, I don't understand your 65 minute timeframe.

48:50Let's go through that from start to bottom and why that's important. Sure. Any, you know, 65 minute, 30 minute, 195 minute. they're all derived from the same math, which is the market is open from 6.30, my time, sorry. The market is open from 9.30. It's not even 6.30 my time, it's 7.30. What am I talking about? It's all right. It's open from 9.30 to four, which is six and a half hours. Six and a half hours is, if you look at an hourly chart, you have seven bars throughout the day. If you're looking at hours, you look at 9.30 to four, I'm sorry, 9.30 to 10, That's one bar. And then each hour after that is another bar.

49:31So you've got seven bars that get equal weighting in a moving average or any indicator. But one of them is only 30 minutes long. So you want to normalize that. So we're 390 minutes in a day. We want it divisible by a even number. So 65 times six is 390. 130 times three is 390. So if we're looking at 130 minute bar, what we're looking at is three bars per day. 195 is two bars per day. It's a half day chart, basically. So that's why it's just simple math. Well, but also if you do volume weight at average and you're using a day, you're using, let's say, if you're doing hourly, well, all of a sudden you're clipped on both sides, right?

50:17A little bit? Yeah. More on a simple moving average because you're giving equal weight to a 30-minute period as six 60-minute periods. So it's not really accurate. Do you like a simple versus a – so simple moving average, let's just for a second. Simple moving average is as it sounds. It's just basically the average price that it travels on an average basis throughout that time period, right? It's just moving around. Um, there's several different, different types of other, well, you go through this, go through the moving averages that, that are out there. Uh, you're the expert. Sure. Well, a simple moving average is just that, you know, if the average five periods ago was 10 and it's 15.

51:01Now you drop that 10 off the 15 drags it higher by in, in each week. Let's say we're talking about a five day moving out five period moving average. Each portion of that gets 20 % weighting. Right. Five, five periods. Now, if you're looking at, you know, a longer period, it becomes a little less easy to do in your in your head, but you can still do it. The exponential moving average, the theory about an exponential average is it gives more, more, more. What am I trying to say? More weight? Yes. More weight. Thank you. You're welcome. More weight to the most recent data. So it's telling you that, you know, what happened, you know, in period five is more important than period one.

51:48So the period one in a five day moving average might get 15 percent of that weighting, whereas the most recent one gets 25 percent of the weighting. And I'm just making those numbers up, but it weighs it much more heavily and says the older data. Don't you think, though, from a. It seems to make more sense to do that. like it's more important than what's happening now than it was five days ago. So let's kind of pay more of attention to it. But most people still use simple. Yeah. Simple. I can figure it out in my head. I can look at the chart and I, it's not a complicated math formula. If you look at the formula for an EMA, I don't know really what makes it move.

52:26When this price drops off, I'm not sure what effect that has on the direction and the slope of that moving average. And to me, that's an important part of my analysis. It's not just, so in particular with that five-day moving average, I look at it and say, well, the five-day moving average is declining. And five days ago, the stock was at 120. Four days ago, it dropped to 110. And then we had 110 for four days in a row. So I know that five-day moving average is going to be declining as long as we have that$120 data from five days ago. But as that data drops off and now day five is 110, now I know that five-day moving average is going to flatten out.

53:06And if we make a higher high above that, now we're making a higher high above the flat to rising five and it will probably be rising. And that to me is more a stronger momentum indicator. And I can anticipate when that direction starts to change versus is this just a blip and the trend is still lower. So if you could force every trader to follow one rule for a year, what would your best advice be to them? It would be learn how to cut your losers at a predetermined level. And as part of that, tune out the news. And probably tune out the emotion. yeah and the the news is a large driver of the emotion the news always is there to you know be sensationalized and make you feel like you're missing out michael saylor sold his bitcoin oh shoot maybe i should sell mine too no it's already been priced in the you know bitcoin went up 15 from that news in in a matter of a week micron has its best numbers ever you know oh i'm missing out this is the greatest gross story ever i've got to buy it or spacex for that matter spacex was the The ultimate, come on, SpaceX was the ultimate screw with your story.

54:26Because at the time when that was all building, I cannot tell you how many people that have never called me about something, called me, wrote me, texted me. Are you kidding me? I said, we're not getting anywhere near this thing, right? And then three days later, they thought you were a fool because it was up so much. Now I'm back to being the king again.

54:47It's kind of crazy on this whole thing. And, you know, that's an important thing because the news and the items, and I'll share with you, and I've said this before because I've been on the show many times. I've literally stopped watching or listening to CNBC whenever I can. Like when I say whenever I can. Sometimes it's for entertainment. Most of the time I'm looking at Bloomberg or other news sources for the actual facts, not the sensationalized stuff by Kernan and Sorkin and Becky and all that in the morning. or Jim Cramer that comes on every day and loves every stock every day and then all of a sudden hates it when it goes down, right?

55:24You know, it's like that. I want to close with this question to you. And I want you to think about this because this is happening. Whether we like it or not, it's happening. Other things like this have happened before, neuro style trading, smart thinking, AI-ish kind of stuff. But AI seriously is here, right? How do you think, have you seen, or how do you think, project, that this is going to arrive in and be a part of a trader's toolbox over the next maybe five years or so? Well, I'll tell you how I use it first. And because I, you know, wasn't using it two years ago. When I look at a stock and I don't really know anything about it, I do a real simple look.

56:14And I will say ELI 15, explain like I'm 15 years old, what this company does. It's bullish and bearish arguments. And are there any catalysts coming in the next two weeks? That's it. Okay. And then I, because I'm looking at a chart setup, but I don't want to go in blind. It's, you know, some biotech that has a phase three catalyst coming in two days. That's why I say, let me know within the next two weeks, because that's about what a swing trade might be. So I want to use it for what I need to know. I don't want to know their debt to equity ratio. I don't want, you know, a 20 page report. Someone shared with me, they said, hey, I built this super cool prompt.

56:56Look at it. I'm like, this is a 20 page printout. I am not going to read this about every stock I look at. You know, if I'm an investor and I'm looking to lock money into it for a couple of years, I'll skim it. But even then, you know, price is what matters to me. Right. If it's got a good chart, great. Or a good story, great. That's how I'm using it right now. That will probably evolve. But a lot of it seems like hype to me so far. I've seen people talking about AI bot challenges, and none of them really seem to be making much money is the consensus. I think it's going to make a lot of people join the algorithmic trading, you know, the quants, like you said.

57:39Yep. That it'll be a lot easier for individuals to do that. And if that's their, you know, area of interest, they should continue to go for it. I still believe, and maybe, you know, maybe I'll be proven a dinosaur. The HI, at least the, the HI up in this human is more like, I would never ever go into tech and ask, you know, perplexity or whoever, tell me about the technical analysis about this chart and look at it seriously and think that, but, but people are doing that. But they do it because they don't know. They don't know. And the problem is it's like anything else. When you come to these kinds of things, I see them as an additional quiver, if you will, an arrow and tool and an assistance device.

58:27There's two different AIs. By the way, it's artificial intelligence. It's Andrew intelligence too, by the way. Nice. But seriously, it's a tool to enhance that can maybe do things a lot. It's been programmed. Until we get into the agentic side of it and the total inference where it could really make decisions and understand, the fact is it's still being taught on what it is. And predictive patterns is definitely something. We can't disagree with this, you and I, right? Predictive patterns can be something it could possibly pull from there. But then again, once everybody has that predictive pattern known, then it goes to shit.

59:01Right. But a tool, I agree with you. I do question also, and maybe a speed factor in maybe making decisions faster than we can type and put things in or on our phone, buying things or whatever. But I would tend to agree with you that it's a little silly to think that at this point that it can be done. It's anything more than just a tool. It'll always be a tool because people are, you know, edges are going to come and go using this new tool, just like moving averages. They're just like breakouts. their tools there to assist us. They put guardrails on our trades. They give us logic for if thens, if the price breaks above here, I'm going to buy it.

59:39But if it breaks below there, I'm going to set my stop and move on because the market doesn't agree with me. And the tools will get more complicated. And a lot of people get bogged down in that complexity to the point where they, like you said, with the people with 16 indicators on their chart, That is the 20 page report to me about the fundamentals of the company versus the four paragraphs that I can read real quick and say, okay, it looks safe to buy this. There's nothing major known. I can trust that. That will likely submarine this so I can get involved. But if I see something in there that says, you know, be aware that their competitor is, you know, reporting this, then I might go to my just-in-case options, like we were talking about.

1:00:24The other thing about the 20-case report, what that really is good for is to hold you into the position, assuming nothing has changed, throughout various cycles of price volatility. So when you get nervous about the stock, you could just reach for that and say, oh, yeah, yeah, yeah. I remember page four. Talking about it's going to be a three-year time frame until they build out this X or Y. Or, you know, the catalyst they have we know is going to be great. It looks like it's there because of some reason. And this is going to be a drug that's going to go through and has four years. So in the third year, second year, you're not worried about it.

1:01:01You can just grab that and use that as a way to hold you in and keep you in. And that's what the analysts do. Right. So. But these are the same guys that, you know, the biggest shame of the SpaceX was what? Last week we saw all the price targets. Some guy, I think he had a$2 ,000 or$4 ,000 price target. Give me a, come on. Crazy. We've seen that before. Cathie Wood, one of the greatest tax losses that you can create in life was to give Cathie Wood your money. That's what they say. Right. The fact is she was hot. She was on every show. She made these great price predictions. and some of the players out there, whether it's Jeremy Siegel or Dan Ives, right?

1:01:39All these guys that come up with these crazy numbers are always on the shows because they are dramatic. They provide an incredible amount of information that may or may not be right, by the way, but they have all this information that just flows, just flows, and it's entertainment. That's what it is. kathy wood tom lee michael saylor those three are like the posters of what to avoid yeah they just oh it's going you know ethereum's going to 5 000 by the end of this year oh no 3 000 oh there was a computer program a glitch that screwed it up so now it's only going to 2 500 and then but but don't worry in five years it's going to go to 100 000 so don't worry about that so that's what the 20 page resource research report might tell you is, well, Tom Lee says it's going to a hundred thousand in five years.

1:02:31Keep your eyes on the prize. Meanwhile, it doesn't mean you have to write it down 60%. Yeah. Well, it's a winter, right? The crypto winter. They've, you got to admit something about the Bitcoin community. They've come up with some fascinating ways to keep you invested and keep you interested. It's kind of, you know, that just the, the winter reminds me also of tax loss harvesting. You harvest a good crop. It should be tax loss weeding. You're weeding out the garbage. But when they say it's sold as we're doing something wonderful for our portfolio by harvesting these losses, you don't harvest the dead crops in the field.

1:03:14You let them take them out. Yeah, we do that a bit. That's what the name of the thing is. We do that for our clients. But the truth of the matter is that has become less and less fortunately for us because there's not much losses to be found. Seriously. I'm not to say I'm sure everybody has the same problem. Yep. Yep. So Brian Chan, any last words? Any last thoughts? Disciplined approach is what it's all about, Andrew. Where do they find you? At Alpha Trends on X is the easiest way. And he sends out, by the way, a regular, I think daily, newsletter with the video that he does. He kind of goes through it in very fast and very fashionable sense, how it's supposed to be looked at the chart, what it is that we're looking at, where the, if then, you know, trust it until this point it's following here.

1:03:58If it goes below this point, get out. This is where our buy target may be on this, et cetera, for markets and various other things. So great job on that. Keep up the great work, Brian Shannon. Love you, man. You too, Andrew. Thanks. Great seeing you again. Thanks. That's going to wrap up this episode all about technical analysis, charting and how to do it, what not to use it for, and what to use it for. A lot of times you'll hear the talking heads talking about this whole idea of, wow, the RSI and the PE, the ratio is below market multiples. And that's great. That's wonderful. But in fact, sometimes not usable.

1:04:30They do it for the excitement, the drama, the talking points, to make themselves look smart, I think. That's what it's really all about. Think about it for a second. That's what they're doing. Use it for decision making. Use it for opportunity. use it for staying on discipline and use the right tools that make sense. The things that can tell you actually what's going on. The footprints in the sand of what traders are doing. That's what you want to use. Really smart stuff. Thanks so much for joining me this week. I will see you again with another great guest lined up for next week. I think it's Christopher Whelan.

1:05:11We haven't had him on for a really long time. It's going to be pretty cool. Again, make sure you subscribe over on Amazon, Apple, Spotify, YouTube. We are also going to start doing more video work. We have a whole new setup going on. So you'll be able to see this in live video. Well, not live. Maybe live, but at least recorded video very shortly. Thanks for joining me. I'll see you soon.

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1:07:08We'll be right back.