Episode Transcript
[00:00:00] Speaker A: Hello, welcome to the money adjustment. I'm your host Doctor Mark Kramer, DC. I am a chiropractor who loves investing and trading. Are you interested in what's moving markets and your money? Great. Me too. Let's get started.
Hello, welcome to the money adjustment. I'm your host doctor Mark Kramer.
I am a chiropractor that loves investing and trading. And today I have a very special guest. This is going to be a unique experience too, because my guest today, I have never spoken to him before. What you are about to hear are the first words we are speaking to each other. Virtual first words. We talked a little bit right before I started the recording, but otherwise I'd like to introduce Andrew Bendica. How do they pronounce your name correctly? Andrew Bondica.
[00:00:58] Speaker B: Bondica.
[00:00:59] Speaker A: Bondika. Andrew Bondica. Love it.
[00:01:01] Speaker B: There you go.
[00:01:03] Speaker A: Bondica. I gotta say it a few times and then I get it for sure. Yeah, no problem.
Just, just for the audience to know.
This is not recorded live, so this may or may not be edited out. What's happening here? This is my first call with Andrew, and this is a unique call because everyone I've spoken to thus far known for an expended extended period of time. This is my first time. And people that are new, that we are new to one another, I usually do a preliminary call before I do jump on straight to recording. But in this case I made an exception for two reasons. Two reasons. One being I always seem to miss, there's good stuff that I get on these preliminary calls that I'm like, dang, I wish I was recording it, because if we don't use any of it, what? At least it's there if we want to use it or not use it. And the second reason is I had faith that talking to Andrew would be a good call because he and I have messaged, been messaging each other for quite some time now. And Andrew was starting to say, and this is what made me say, wait, wait, wait, I'm gonna hit the record button. Andrew was like, threads brings people together, and that is our, our thread is threads for sure. And I recognize Andrew as being an OG on the platform because you were putting out the threaded magazine. And almost from like day one, I'm like, dude, this guy's on it every day. I'm seeing threaded issue one, issue two, issue three. And the covers were always fun and cool and there was a lot of engagement with people and just, it felt so, just authentic and cool. And I've been a fan of yours, actually, for that reason, for quite some time. So I'm very excited to do this call with you. I'm going to give you a chance to speak here. I promise. I like, just, this is my, this is my warm up.
[00:03:08] Speaker B: No rush, man. I'm happy to be here. No problem.
[00:03:12] Speaker A: But what we're actually doing this call in the context of investing in trading. Right. Trading at least. And that is a shared interest that Andrew and I have discovered. And I am going to explain with Andrew, I'm most interested in, and I hope he's, hope he's comfortable talking about this. I'm assuming he is, because that was the gist of the direct message, is just talk about trading.
[00:03:40] Speaker B: Yeah. All right.
[00:03:42] Speaker A: So, Andrew, I do have a question.
This is my first thing. I'm starting to anchor myself to this question, which is how long have we known each other?
Yeah, so I kind of already. Go ahead, jump in, man. Let's read a voice.
[00:03:58] Speaker B: Three months, probably. I think we've known each other digitally maybe a little longer. But I mean, it's like since the new year, I feel probably when I connected with most people, I think we did, like, threaded awards and a lot more people started to show up and, like, be involved in this idea of, of, like, uplifting the community. And so, yeah, I think only, like, probably since the beginning of the year. So we're like, maybe six months in.
[00:04:25] Speaker A: That's awesome.
I know we're going to talk about trading, and I hear you talk, but I also see all these great reels and posts that you have, and you are a very, I know you're a positive person, which is, again, another reason I felt like I could get on the call with Andrew, because he's just putting out good energy, good vibes, as we like to say in the community.
[00:04:45] Speaker B: Yeah, yeah.
[00:04:47] Speaker A: So now, now let's talk about trading.
Let's do the trading talk. Yeah, so I think you read, I think you reached out to me on this one with regards to trading. You're like, I'm back in town and I'm going to start up again. How long have you been trading for?
[00:05:08] Speaker B: Yeah, so I got into day trading. I would say 2019, 2020.
My wife was a technician, so she was formerly trained as a technical trader, learned chart reading and technical analysis. She started with options way back in the day. She found a course online and she's like, I want to do this.
Really how it started. I was doing door to door sales, and it was summer sales. This was like, a long time ago.
And we were in Texas in a hotel, and I would read the newspaper on Sundays, on my one day off, and I was looking at the financial section, and then I left it. And so she started looking at the tickers, and she's like, what is this? And so anyway, so that was, like, her trigger exposure to the market was, I think it was probably the New York Times or something. And so she found a course and took the course. It was on options trading, and it, it wasn't bad, but that was the season when there were broker fees and commissions. And so it was like, it was really challenging to make money if you had a small account.
Like, you're really, you're really trying to just break even at that point. You know, for, like, I would say for, like, entry level traders that are like, oh, I just, you know, I'm at home. I have some time. I have a little bit of money. So a lot of people don't know, you know, like, before Robin Hood and, like, before the brokerages erased the commissions. Like, it was really challenging to make money like you're giving, especially if you're doing a lot of round trip trades. So then she, so she was learning. So I was, like, learning vicariously through her about the market, and I had no idea. I remember buying buffalo wild wings through my fidelity account, and it shot up. And I was like, I just made so much money, I'm a genius. And then gave it all back, probably nothing, not much long after. And I was like, I am not a genius. I am for sure not a genius. So now that's the joke. It's like the Ameritraders or whatever, they don't know, but they make some money. And so they're like, I trade the market or I semi invest. And so my introduction was actually through my wife. And so she ended up with this guy, Sammy Albusad, who is with t three. He's one of their instructors. And he is like, he is unbelievable. Like, he posts all of his trades, every losing trade, every winning trade. And so she started to learn gap trading, and then I think she took her series. I don't know what it was. It was probably like a series seven or something, but she had to take two tests to become a prop trader.
And so, like, she became a prop trader, and, like, she was able to trade on, like, borrowed money.
You know, this was before we had money. And then I simultaneously was becoming a director and an executive, and so we started making a ton of money, and so I was able to, like, fund her account, and then I funded an account for me. And so I, I learned a lot of the basics just because we didn't have money at the time. Like you, you lose. You lose most of your principal just learning. And that's probably the hardest phase, is when you don't know what you're doing. You're learning the lessons. You're eager to trade real capital and finance and account because you're like, paper trading is like, there's not the psychological stress or tension and there's not the monetary reward. And so there's a lot of things working against entry level trading.
And so it was really interesting. So that was mine. And then I funded an account, and I'm very risk averse, but I'm also like, I don't have a fear of loss. So once I learned technical analysis and how to read time frames, I would set up my scanners and I, I would play the same stocks pretty regularly that had high volume, the volatility was really high, and I would trade, like, the first five to 15 minutes of the open and make my money and quit. And so what I learned in that, like, when I started was how to size my positions based on my risk unit. So for anybody who's watching, like, if you've read the book the complete Turtle traders, like this story of this stock market wizard in Chicago, and he's like, I could take anybody off the street and teach them how to be millionaires in the market through technical analysis.
And he did. And so it was like this huge secret project that eventually hit the times. And then this reporter did this big article on it and interviewed all of the turtles, and they all became millionaires. If they stayed, they became millionaires. And they all traded using this win loss strategy on your risk unit and your end unit. So that was how I learned, was like, it was very technical.
I only used the 20 ma. Like, I didn't use a bunch of, I didn't use a bunch of indicators and, like, overload my chart. I kept it really clean, traded off candles. I was really heavy on, like, the five and 15 minutes, but I would always verify with other, other timeframes, like, the bigger timeframes, and then also look at the queues and the spy and I make, you know, and then check the industry and make sure, like, hey, what's the overall sentiment for the industry leader? You know, if it was solar at the time, is it for solar or Sunrun? And then, like, what are the other companies doing? Because a lot of times they're going to follow the industry leader, and then you're also don't trade against the overall trend of the market. Right. So, like, I learned so much about the basics of day trading, you know, like, even just what a day trader is, I didn't know.
You can't do more than four round trip trades in a, you know, date like trips or in a week if you don't have an account that's funded for $25,000 or more. Like, so, you know, if you're like.
[00:10:52] Speaker A: I want to be trading rule. Sorry, sorry. Yeah. Pattern dates.
[00:10:57] Speaker B: Oh, no, no, no.
[00:10:58] Speaker A: Yeah, yeah.
[00:10:58] Speaker B: There you go. Yeah. So, you know, like, if people are jumping into the market and they fund an account with $500, they're going to see how many trades they have left before they hit that limit. And it's like, you can't take any more round trip trades in a day. You have to hold your position at least overnight so that it doesn't flag. You don't get flagged as a day trader. Right.
[00:11:16] Speaker A: And then you're taking a risk by holding it overnight. You're taking to holding it overnight.
[00:11:23] Speaker B: Oh, yeah. Especially seasonally. Like, if it's quarter, you know, if it's quarterly earnings season, if there's a fed announcement, if any news hits, like, you could gap down or gap up, depending if you're long or short and you're holding a bag and if you didn't have a stop loss in. And. And even then, it's like, you may not get a market bill or get a really bad market bill when the market opens. You know, it's not as common, depending on what your, I guess your certification is. If you can. If you can trade pre market, pre market hours, like a lot of times you just won't even get a fill if there's not a lot of action, you know, on a stock. So it's. I mean, I geek out. I love, it's so cool.
[00:12:00] Speaker A: I'm blown away, man. I'm blown away. You just did a mini course. Like, this was a mini course on trading. And I have so many people reaching out to me now. I say in the beginning, and as you know, like, I'm a professional and similar to your wife in 2020, I just. I had always been in and out of the market since the nineties, but just casually and partly because of what you said, I didn't like the fees. I didn't like paying to trade when you know how much you can make and it's relative. There was a time where it made sense, but now, competitively speaking to your point, Robin Hood, everyone had to go to zero. It was a race to zero. In terms of making your money through, or the institutions making their money through you replacing your trades or the brokers, and they still do, but it's pennies on the dollar and it's almost negligible to what people are able to do. And it just provides an additional level of liquidity to the market because you took out a barrier of resistance for people willing to trade. And the market is based on a lot of people's willingness to trade a. Yeah, I'm a geek like you are because similar to your wife, like I was saying, I took an options course.
I educated myself on cryptocurrency. I studied technical analysis. I learned the bars, I learned the chart.
I relate much to your wife in the sense that now she wasn't a.
I'm trying to remember. You didn't say she was a professional in finance at all, right?
[00:13:34] Speaker B: No, no, no.
Yeah, she was an actor, administrator.
[00:13:39] Speaker A: Yeah, yeah. And so that's kind of the audience I'm trying to reach with what I'm doing because I'm a retail investor. I still think you're better off building wealth through a professional. I still think on the higher scale when you're putting money away and, like, not trying to trade it or trying to take profits or immediate profits, you're better off building wealth on the long run by having a financial advisor. So, like, people are now starting to reach out to me. Like, I want to make money like you make money. And it's like, well, it's. Then I start thinking about, oh, man, that is, that's a steep learning curve. Like you said, it was a learning curve for you, was a learning curve for your wife, for, I mean, arguably, it's an ongoing learning curve. So unless you do kind of geek out about it and, like, the analysis of the charts and are looking for creative ways to make money other than just, you know, selling another product or something, it's an interesting option for people.
[00:14:38] Speaker B: Yeah, totally. Yeah, yeah, I think you're right. And the other side of it is, like, even once you're proficient in trading, you're still going to lose on a lot of trades. Like, you're just trying to have, you know, 300 batting average or 200 batting average.
And it's not like once you know what you're doing, you don't lose money anymore. It's once you know what you're doing, you cut your losses sooner and let your winners run. Like, you just, you learn the discipline of holding your stops and eating the losses because as long as you end the long game up, you did what you were supposed to do. And so that's just understand, like, sizing up your risk. You know, what's your risk unit like? For me, my risk unit was, was $1,000. Like, I was willing to lose $1,000 per trade and shooting for two to 3 hours. Two to $3,000 on a play. So, like, if I'm looking at the current, where it's at sitting right now, what's the current strike price or what's the market price, and where's the, where's the stop on the timeframe that I'm trading, and what's my target? What's first target and second target? And, like, then you have to size your position accordingly. Like, you know, divide that by whatever the, whatever the stop is, and that'll tell you, like, how many shares you should buy. And then you place your order simultaneously with your stop in. Like, you place it with your stop already ready, like, at the same time. Because, so, you know, like, I would say the bigger part of trading is less about trading and more about developing your trading plan. Like, what are your non negotiables? Because most losses, heavy losses, are incurred when people abandon their strategy that they had before they took the trade. They get emotional and they think like, oh, I'm smarter than this. And it's like, no, your trading plan is where you were smart. That's when you were not emotional, you were pragmatic, and you were, like, very objective about what you're trying to achieve long term. It's when you see money falling out, like, your principal's dropping. And so, like, I just followed, I literally follow the playbook of the turtle traders. And it's like, once you know, if you're, if your principal operating capital drops 10% or 11%, and you're only trading 2% of your available capital, it's like, if you have $100,000 funded account, you're only putting up $2,000 in a position like Max. And when your principal operating capital drops 11%, let's say it drops down to $89,000, then you reduce your initial, your risk unit by 20%. So you're going down from 2% to 1.6% or whatever it is. And you have to constantly adjust based on your overall nut, because if you're just thinking like, I'm going to make it back, it's like, look, if you lose 50% on a trade, you actually have to make 100% back to get to break even. It's not the same deal that's right. So a lot of, you know, like, the math is really simple, but I think the harder part of trading is all psychology. And so when you said, like, oh, I seem like a positive person, it's like all trading is all psychology. It's very little. I mean, it's basically four buttons that you push. You put in what youre, what your target, like, what your buy order is. Is it a limit buy? Is it a market buy? Is it like what you're, you know, you know what I'm saying? Like, it's very, it's pretty rudimentary. It's like caveman stuff.
[00:18:02] Speaker A: Yeah, no, I get, I, making videos.
[00:18:06] Speaker B: Is harder to me than trading stocks.
[00:18:08] Speaker A: I 100% agree with you on that because I'm venturing. This is new territory for me, the podcast route and creating digital content in general. And we could do another one on mid journey because I know you're a fan of that, too.
[00:18:21] Speaker B: Yeah, yeah, yeah, yeah.
[00:18:23] Speaker A: I'm gonna, we'll keep this one one for trading, just not to get too divergent. And I love it because I have a, my best friend got me into trading, and he's been trading for two decades, and he's a, he's, he's like, I just trade by my gut, you know, I trade my gut. And he, he's a gen xer like me. So I feel like younger traders like yourself, educated in a different way than we were raised in terms of stocks. We were more outsiders. I certainly felt this way. An outsider looking into the market and not really seeing that it was a world that I could be a part of, of, until technology increasingly got better and better. And it just made it easier and easier to be part of that world in an active way. I've always been kind of passively involved in that world, but never actively involved in that world. And to have a conversation with a younger trader like you because I'm just educating myself on CNBC and YouTube videos, that's like crazy. That's what people said. Bad money, baby. Now I watch like, squawk box and squawk on the street, and my favorite is the halftime report. I'm like, that's, that's my daily show. I like a binge on that.
But that's where I'm just learning, by listening to other financial, not other. I'm listening to financial professionals. But I recognize myself as the retail trader. And I think to myself, if I didn't like this, there's so many other things that I could do for sure. I stress this again for people that are listening and it sounds like you've experienced this as well. I think there's a sense when you start in the market, and it makes sense that you think this way. I certainly thought this way. I want to make money. I just want to go in the market, make my million bucks and get out, or whatever your number is, but I want to just get in and make my money and get out. And then the more you're in it, you're like, oh, crap. Because honestly, even when you make money, you have to know how to allocate the money that you made. So it's always some type of reinvestment. It never feels like, oh, I'm just going to draw it out. And some people, and I'm sure the professionals do, where they draw it out and they take their profits and they buy their lamborghinis and they're on their way. But for a lot of us, it is like a grinding process.
And to know when to take profits, even I still am working on this after years and years and years, is knowing when to take my profits and then keep my, like, take them and turn them into something material in the real world, because I've seen, I've seen my net worth.
I was recently called out by Grant Cardone because he's like, you're a junkie. He said, in a virtual room of like 300 people, he called me a junkie. But it was kind of like this, where I've just seen a lot of money flow into my life and flow out of my life and kind of flow in and flow out. So I don't feel that sense of like, I mean, I'll be honest, I'm a better asset allocator than I am a trader because I manage my own Roth IRA and that's done fantastic. And a lot of things I'm up, you know, like the 100% or 50% or I kind of planned my entries, took a long position and it just held. And then certain times I trimmed and I did all the things that you're supposed to do when you're managing a portfolio. So I consider myself, on a financial end, maybe a better portfolio manager than I am a trader, because trading is like another animal. And even within trading, there's the tiers because you get the scalpers that are really like, oh, my gosh, it's just like quick, fast day traders who have to profit every, you basically have to, you're not going to profit every day. That's why it's a profit and loss. It's not just a profit. It's a profit loss. And the idea, like you were saying earlier, is you want to win more than you're losing. That's the simple of it. You have to win more than you lose. And you brought it up in the technical aspect by saying you decide your risk tolerance and you say, okay, I'm going to take a risk reward from one to three. You said one to two or one to three. And I'm the same.
[00:22:34] Speaker B: I'm a one to two. Yeah, yeah, yeah.
[00:22:36] Speaker A: One to two. The nice thing about a one to two is, is if your price target is shorter, it's easier for you to hit your price target. So you could. Yeah, in a way, you kind of almost, you don't necessarily have to, but you, but it does require. I can't say, I'm not sure if I can say this or not requires more trading because it's a lower, it's relative.
[00:22:58] Speaker B: Like, if you have a volatile stock that moves five to $0.10 in a, in a, in a tick, like, that's your. Like, it. You may not need to, you know, but then it's also like, it could be a volatile stock and really expensive, so you can't afford to, you know, like, if you, if you buy a few, like, it could move. It could hit those targets for you. The same as a really cheap stock that doesn't move a lot. Like, you could buy a ton of shares of american airlines and it's only going to move half a cent to a cent. You know, like, you know, two cent.
[00:23:28] Speaker A: Right.
[00:23:28] Speaker B: So your position size. Yeah, yeah, yeah. Or whatever. Like, you buy the things, like they're, they're more expensive or Tesla.
[00:23:38] Speaker A: Yeah. As a contrast. So when you're saying American Airlines, it's only going to move a little bit, its standard deviation isn't high. It's like you said, ten cents. Fifty cents versus a Tesla will move $20, $30 on a move on a tick.
[00:23:52] Speaker B: Totally.
[00:23:53] Speaker A: I mean, yeah, totally.
[00:23:55] Speaker B: And there's cheaper stocks that move like that, too, that will move a few dollars in a day. You know, like, they're really volatile. I remember first solar was like that, like, back in the day when I was day trading, where it would be like, I mean, I would be up $20,000 on a position in, like a few minutes. Like, it was like, super volatile. So, and I was traveling while I was doing so, I wasn't looking at the stock. I would just, like, get a position. So I wasn't, like, full on day trading. I was traveling. And my, and my wife was like, you cannot do that. Like, you're gonna give me a heart attack. You cannot have an open position.
Oh, she's totally different. You know, like, I just didn't care. I was like, whatever, dude. Like, it's whatever.
[00:24:31] Speaker A: Does your wife day trade? Is she a day trader?
[00:24:34] Speaker B: She's not. She's a swing trader. So she has, yeah, yeah. So, like, when you were talking about the tiers, you know, it's like, you got scalpers, you got day traders, and then you've got swing traders and you've got core traders. She's probably more like, she's definitely swing trading, but in a little bit of core in there. Like, long, like, buy and hold. But I would say that's her strategy. I mean, she fat, she loves apple. She likes blue chip stocks that over the long haul, like, they just trend up and even, you know, even if they have a stock split, like, it's just so more people can afford the stock and they're going to continue to go up, right?
[00:25:07] Speaker A: That's right.
[00:25:08] Speaker B: So she's, she's a swing trader through and through. Like, day trading for her is like super high stress. She has a fear of loss. So, like, you know, every trade she takes, she's already afraid, like, this is going to lose money. And so even if it's a runner, she'll take profit early and not get the full gain. And then when she has a loser, it's like, I need to hold on to this because I can't lose that much money, I'm afraid, you know? So it's like the psychology side of trading has, like, your trading style has to match your, like, your emotional tolerance.
And people are like, you need to control your emotions. And it's like, we don't control our emotions. Our emotions are there. You just have to work through it regardless. That's why you have to have your non negotiables in your trading plan. So you don't think when you're in a trade, the thinking happens long before you push that button and you should have done the math and sized up your positions. And if it goes against you and you get stopped out, it's okay. And then if it turns around as a runner, then get back in and go long, like, you know.
[00:26:07] Speaker A: Two questions for you. What kind of trader do you consider yourself?
[00:26:12] Speaker B: I'm a day trader. I'm a day trader for sure.
[00:26:14] Speaker A: You're definitely day trader, however. But you do travel. Do you just take, take time off from day trading? When you're traveling, would you say that yep.
[00:26:21] Speaker B: Yeah. I'm not a full time day trader. Like, when I trade, I'm a day trader. Like, I, and, and I would say this, like, I'm, I trade to target. So I'm a day trader, but I'm okay holding a position over if I believe that. Like, if I believe in what I was doing, like, I wouldn't close my position out, but I would raise my stop. So, like, if, you know, like, trail it up. So if I'm in the money and it's going to go over for the night, then I'll put a stop closer to my, like, closer to where the current, whatever the current market price is. So if I were to get stopped out, I wouldn't give back all of my gains if, even if it hadn't made it to target yet. Because you can always get back in at the open if you want to.
I'm definitely not a scalper. Like, I'm not an in and out 2 seconds. Like, give me my money. I think that's insane. You know, like, I just, I like, I like trading the open. It's where a lot of the volume is. You know, you're going to have like the 1030, 11:00 low where the market slows down. People go to lunch and it's not going to pick up until like 132 o'clock for the afternoon session. So there's definitely, like, times, you know, it's different for crypto where it's a 24 hours market, but I would say crypto trade it. What are you trying, what are you active yet? So I'm just getting back into it. So I'm actually, like, setting up my scanners again of, like, I don't even know what's moving in the market right now. Like, energy stocks were, like, super hot when I was in and I was making a bag. And then, like, now those are like, I mean, you think of, like, I'm trying to even think of what the tickers are, but most of them are, I mean, they're approaching, like, yeah, really?
I say penny stocks is like anything trading under $5. That's, that's a penny stock to me.
[00:28:00] Speaker A: You bring up a good point in terms of getting back into it. And when I think of it, too, it's like going to the gym. If I, if I haven't gone to the gym in a while, I have to re acclimate, like, for a little bit to get back into the swing in the sense that when you're out of the market and you're not paying it, you're not feeling the sentiment. You're not feeling what's happening, what stocks are trending, what's the trend, what's popular when you're out. And so when you come back in, you got to listen a little bit to be like, okay, AI stocks have been trending and you want to be careful that you don't catch interesting. You're not the end part of that trade. With regards to, like, with regards to energy stocks, I was thinking, oh, yeah, what are the tickers? And I'm thinking oil. Names like Devon came top of mind and Occidental, but it's really oil and not necessarily the broader class of energy.
[00:28:49] Speaker B: Yeah, you'd be like, slr SPWR.
[00:28:55] Speaker A: What is it, nee or something? Next. Next. Nexstra energy is a kind of a popular one. It covers a lot of bases. But my point was, like, even I was like, at one point, was interested in them and have not paid attention to him in a while, would even take a minute to recall some of the tickers. So unless you're, unless you're kind of buried deep in it. And in fact, I've been a little bit more out of it than I've been in the past because this creating content is consuming a lot of my time. Like, I've added a good 12 hours to my week in terms of editing, and I'm not even doing the layers of complication that you have where it's a little bit more artistic. I'm just kind of like, I just got to say things and get myself out there because that's the quickest way I can create content. For example, this video, I'm going to clip it up and we can share it and do whatever you want with it, but it's going to be, you know, hopefully good two, three pieces of content for you. It could be more because I really loved everything you were saying. I'm excited to have someone that's a little bit more where I'm at in the sense I'm not a financial professional and neither are you, but we're more knowledgeable than a lot of people. Like, when I was starting to even say, my best friend, he's knowledgeable in a certain way, but if I start talking technical analysis or if I start talking options, he's checking out because he's like, that's fine that you're into that stuff. I'm not ready to sell.
[00:30:16] Speaker B: I just buy himself, man.
[00:30:17] Speaker A: I just buy. And he likes his positions, and he just trades the axe.
[00:30:20] Speaker B: I like buffalo wild wings.
[00:30:21] Speaker A: They have good wings.
Yeah.
[00:30:24] Speaker B: Yeah, looks good to me. That was me.
[00:30:26] Speaker A: Yeah, yeah, he's good. He's. Yeah, go ahead. Yeah, go ahead. Yeah.
[00:30:31] Speaker B: So I just think, like, for people that are listening, that are looking to get into trading or looking to get into the market, I think that, like, if you learn the principles, like, trading principles, that's where. That's where you make your money, is, like, your non negotiables. And in your trading plan.
Right? Like, you have to have. You have to have non negotiables. If everything is open for discussion. Once you hit, buy or sell, if you're short or long, you're in trouble. Like, you're gonna lose your shirt at some point, because every trade will go against you at some point. Like, and some of them keep running. Like, you know, the thing about stocks is, like, a stock can actually go to zero. There's nothing you can do, you know? So you're short on that. You're shorting a socket, you know, and it goes in. It and it goes long. You're gonna get. You're gonna get a margin call. Like, you're. You're gonna have to. You're gonna have to cover.
[00:31:25] Speaker A: Do you short? Do you short?
[00:31:27] Speaker B: I do I. Yeah. Like, I actually was really proficient in shorting. I would read socks. Like, yeah, I love shorting. I felt like I could do it all day, no question. So, so, like, I don't. I'm not really interested in industry specifics. The only industry I don't touch is, like, pharmaceuticals because they're really volatile.
[00:31:45] Speaker A: Oh, my gosh. Like, with you on that, like, I. Biopharm. I. I can't stand it. I can't stand it. To me, they trade, like, expensive penny stocks.
[00:31:53] Speaker B: That's what they are. I mean, that ultimately, I mean, they're all like, you know, a dollar under a dollar.
[00:31:58] Speaker A: But when you're talking about style, some people, like, my friend likes them because he likes to follow what's going to be that catalyst. They're very catalyst driven. It's like, what drug is going to come on the market? How is that drug going to do? Did it pass certain trials? All those little articles will give it that spike. And people who know that space love to trade that spike. Just like, some people just like to trade earnings, which is, again, some people just trade earnings.
[00:32:23] Speaker B: Yeah. Gas. Yeah. Gap trading. Yep. 100%. Yeah. I think you're comfortable. But, like, the idea is, like, if you have prince, if you trade on, if you. If you chart trade and you follow your technical analysis and you look at the industry and you look at the overall trend of the market. You can trade any. You can trade any sector pretty much the same. I mean, it's like you're following trends and setting support and resistance and where's demand? And a very simple thing I learned early was you would see a stock that was really volatile or there was a lot of movement and it was affordable. And then it's trading 10,000 or 15 shares in volume.
You learn to look at these different things. It's not just the indicators. It's not just the trend lines. It's not just the volatility. It's not just the targets and support and resistance. It's also, like, is there volume? Like, if people aren't trading this, you may end up. Like, it could run up. And you can't sell your business. You can't exit your position because there's no. There's no supply or no demand. So, like, there's. There's other things that you have to consider that you learn over time. I think that what I. What I believe about the market is, is long term gains, long term small gains. So, like, I have. I have a matrix of, like, you know, when I was. When I was trading $1,000, you know, my risk unit was 1000. My target was, like $680,000 a year in income. Like, just, I could live off it. And so I didn't. I didn't mind. Like, I would trade the market early, make my money, and then close my positions. Like, what a lot of people don't understand just to make. So, like, right now, I'm just getting back to the market. So my position size is $138. Like, the goal is I can make $34,000 off of that. Well, I'm debt free and have capital, so, like, I don't need an income, but, like, I like to value a dollar. So, like, it's not a neat thing. It's like, I like to keep score the right way, and I like to value a dollar, so I don't need a, like, just to be reckless and just to prove something. I want to. I'm starting with $138 r where, like, somebody that, from the outside, if I showed them, like, oh, yeah, I made, like, $336 this week. You know, and then you go, and then it's like, last week I lost 127. And then this week, it's like, I made $670. Or you know what? Like, totally insignificant. They look at it like, dude, you made, like, $1100 for a full time job.
But what you don't understand is I have total autonomy and independence. And I can, and I can learn. And what happens is I'm going to increase my r over time where I'm not going to finish the year with this r. This is just where I'm at right now. And I'm going to increase my r and increase my position size, and I'm going to get to different earning levels. But it's like, there's a rush. Like, people look from the outside, like, trading is. There's some silver bullet to answer your financial lows. It's like, dude, get a job at McDonald's and have health insurance. It's better in the long run. And you get free shirts. Like, better than trading the market.
But if you're patient, learning the market with a really small risk unit and learning the technicals and just being okay. And the way that I track it is I just have a weekly, daily tracker with my averages. So I manually put in, like, this is, this is what I trade. And then I have a tracker sheet of, like, what stock I traded, what was my entry price, what was my target, what was my strategy going into it? When would I add to it? When would I take away? And then what was my exit position? And then I take that dollar value and put it into my daily tracker. In my weekly. So, like, it'll average out, like, all the day that week, and then it'll average all the days of the week for the month. So I can see, like, what's my average on Wednesdays. And so this was really important. Actually learned this from sales. I just applied it to trading is like, there were days, like, Tuesdays were my worst day trading. And, like, historically, every time, I lost a lot of money on Tuesdays. And so. But I tracked my days every week. And so I would see, like, wow, if I just don't trade on Tuesdays, I'll increase my. My weekly earnings by $8,700.
[00:36:22] Speaker A: I just don't have to trade.
[00:36:24] Speaker B: Instead of trying to solve, like, instead of being like, do I binge watch something on Monday nights and I'm just trash on Tuesdays? Or is it like, I have this anxiety of, like, I've got to hit my goals by mid week so that I can take a lighter weekend. There's a lot of things to go into. It's all psychology. So if you can find ways to isolate areas that it's like, I don't need to improve here. I just need to stop doing it. And then other areas will get better because I'm not stressed out.
You can have a net positive gain by doing less. Like, sometimes. But the whole idea is track your results. Every number you can track is going to tell you a story on what you think about yourself and what the truth is. And I'm interested in the truth.
[00:37:06] Speaker A: Right, right.
[00:37:07] Speaker B: The homies are interesting. Preach it. The homies are interested in, like, yo, how much money are you making? I'm like, nothing. I'm losing money hand over fist. And they're like, why are you still doing it? I'm like, because I'm net positive overall. It's a terrible week.
[00:37:22] Speaker A: Yes. I just don't care what they, oh, my God, Andrew, you blew my mind, man. I do these, I do these calls with my young, my young friend George. He's getting into trading. He's more novice, but he's got an aptitude for it. Like, he likes looking at the chart. He's thinking through things, and he's like a sponge right now. And I get on these calls with him and I feel like you where? I'm just like, I'm so excited about it. I'm going, I'm going, I'm going. And George at the end goes like, oh, wow. I really felt like I didn't contribute. Like, I'm just learning from you. And I had, like, this experience where it's like, oh, wow, there's some really good nuggets in here. And I'm really on the same page with you with so many things. And I found myself listening to you talk, wanting to go into depth, into a little bit more of what you were saying. I didn't touch the brokerages. Like, like, you started, alluded a little bit to what you like to trade, but it's like, you could trade cryptocurrency if you wanted to. I mean, you could, you could trade, I don't know if you're interested in futures. Like, George and I are learning to trade futures. I've never traded that before. And so we're on a learning journey together. I've traded options. I like options, but I, I strategically use them. So I feel like there's, there we're definitely.
[00:38:41] Speaker B: Yeah, yeah, yeah, yeah. To be continued, man.
[00:38:43] Speaker A: Yeah.
[00:38:43] Speaker B: It's a great, great place to leave off for the audience.
[00:38:46] Speaker A: I love it. I love it. I think I'm just gonna have these tons of great clips that are you and what you're saying. Cause I could just see the highlight reels. So you and I will message each other and we'll decide how we, you know, the next time we want to meet up and, like, just evolve whatever this is going to be. And for the audience, thank you guys so much for. I hope. I hope you enjoyed that because that was super fun for me, and I'm looking forward to seeing how this plays out. Everybody. My friend Andrew. Bandica. Bandica.
[00:39:19] Speaker B: Bondica.
[00:39:20] Speaker A: Bondika. Bond.
[00:39:21] Speaker B: Bond. Bond.
[00:39:22] Speaker A: Bondika. Bondika. And it was great having you. And I'm gonna say goodbye to the audience, but I want you to stand and we'll do a. We'll do a debriefing at the end, for lack of a better term. Bye, everyone.
[00:39:35] Speaker B: Bye, guys.
[00:39:36] Speaker A: Thank you for watching this episode of the Money Adjustment. If you want more, like comment and subscribe, you can follow me on Xrramer. Until the next episode, stay healthy and wealthy.
