Let me ask you this. So let's get into some meat and potatoes. Technical analysis, right?
You talked about technical analysis. What are some of your favorite indicators? And what is your overall thoughts on technical analysis? Because a lot of times people say that technical analysis is overrated, or some people only use technical analysis. So what's your thoughts on technical analysis?
And how do you use technical analysis? Okay, so at this point, I need to call on my partner, David Green. So I'm the motivator and the moderator and motivator in chief. David Green, who I met here in 1985, who's my mentor, my friend, my teacher, is a master technical analyst.
He's my partner in Wall Street Global Trading Academy. He's taught tens of thousands of people over the years. He runs a live chat room called the Green Room Live.
He's the analyst. He's taught me everything. So I'm not a technical analyst.
He is, and he's my teacher. He's my go-to. And so a lot of, look, we didn't invent it. A lot of people use it.
Some people like it. Some people don't. Some people fill their screens. You know, with so many different signals that it looks like air traffic control on 9-11, right? And that's not going to help anybody out.
So, and people ask us, why does David use what he uses? Because it works. Okay, that's what you want to know.
You want to go to someone who's doing it successfully. and say, I want to do what you're doing. How do you teach me how to do it? What do I do?
So what we do is we use the EMAs, the exponential moving averages. Everyone uses different ones. We use the 9, the 15, the 30, the...
the 65 and the 200. The 200 is the wall of China, right? The farther away you use a moving average, the stronger the indicator is that the stock is going to stop going down and start going up or stop going up and go down. We use what's called pivot points.
I don't need to go into the explanation. If you use thinkorswim or any of the other platforms, a pivot point is a formula. It's a formula that's figured out.
It's way beyond me. I know I look like Einstein. I'm not that freaking smart. Okay.
And then we use the RS. RSI, which is the relative strength index, that signifies overbought or oversold conditions. Then we teach about five particular trades that we use for technical analysis.
So there's a trend trade. Sorry. There's a trend trade.
What's a trend trade? The trend is your friend. It's an old Wall Street adage.
It's when a stock is going up like this. But that's not enough of a reason to get into a trend. A trend trade, there are rules for each of these trades. Trend trade, moving average trade. Far from moving average trade.
Double top, double bottom, and a swing trade. We want to keep it simple. That's all you need.
This isn't hard. It's hard, but it's simple. Simple, yeah. And difficult.
You have to do it correctly. It's everything. It's everything. Okay? So those are the five trades.
And each trade has a criteria that is necessary to be fulfilled to get into the trade. As I said, hope and FOMO are not reasons to get into a trade. Uncle Herbie telling you to buy it is not an excuse.
watching Wall Street bets and reddit that trains left the station there are a million of pumping dumpers out there Jordan Balfour used to work right out of this place still a criminal always a criminal tell him to call me if he's got a problem with that okay all the smoke all the smoke he hasn't even paid back he paid back 30 million to 300 million he stole anyway end of that story everyone's in everyone's entitled to a second chance pay your money back you can talk to me anyway okay so I like those are the trades now it's super important that each trade so you can't have one criteria fulfilled the market is the dynamics of the market are fascinating this market goes up and down a thousand points we can be in a a bear market used to be generational took 25 years yeah for a bull or a bear market last two weeks ago at 11 in the morning we were in bear market and at three in the afternoon we were in a bull market right okay well that's insane the terminology must be re-evaluated right you can't have a market that's down 1800 points at noon up a thousand points at four and think you can use terminology that was used in the 30s and 40s. That's why I keep saying I got the no recession special going on. Because the components of a recession involve the labor force, massive layoffs. I know the media loves to pump stories to get people all wrapped up and stuff. I'm a cup half full person.
I want to empower people to be confident and not scare the shit out of people. So those are the technical analysis trades. There are criteria for each one of those trades. So a trend trade. Just for an example, if you need to understand more, we can go into depth.
The course is really fun. It's accessible. It's 21 videos, 9 hours.
It teaches you everything. You can know nothing from a stock to a stock to a stock. You can learn how to trade the market.
But you need to follow the rules. You have to realize the psychology of trading is devastating, right? You're always thinking you've got diamond hands.
It's got to go up. It can't go down anymore. I mean, the mistakes people make are all the same, okay? A trend trade, fascinating trade. So you think, oh, it's going up.
It's, well, I've got to just buy it because it's going up. Not necessarily because the stock can turn and go down. Just as quick as it goes up. A trend trade definition of a trend trade is when a stock is going up and it pulls back to the 9 or the 15 EMA. You're a technician.
So it's got to pull back to a level of support. goes to the 9 or the 15 you buy it and it's going to continue to go up and you stay in that trade until the trend breaks you use stop orders every time you get into a trade okay a moving average trade is another kind of a trade a swing far from moving average trade is when a stock's gone is it two dollars from the last moving average it's gone up three days in a row and it has an rsi of 20 or 80. all three criteria must be reached okay okay if not it just if it's up three days in a row that doesn't mean there's a trade because the rsi has to be be above 80 or below 20. It can go up another three days without the RSI. You started selling it there on a reversal swing trade, and you're going to be $9 out of the money before you get into the trade.
So that's just an example of technical analysis of the history of charting to try and identify the way stocks have moved historically. All the more important in a market where a stock can go up. Look at what we see here these days. Earnings come out. Earnings were great.
Stock goes down $50. Earnings were good. Guidance was good.
It goes down $50, right? It goes up 20 and down 50. I mean that risk portfolio, that volatility, you know, I don't know, most people's risk profile is not a $50 move in a stock. So you need to understand that in a market that goes up and down thousands of points, risk management, money management, order management. Absolutely. Talk about everyone can get into a stock.
Everybody in a buy order. It's a matter of what you do once you're in the buy order. You get into a buy order or a short order.
You put in a stop order. down or up 1%. The minute you make 50 cents on that trade, and I know people think, oh, I want to make a dollar.
I want to make $5. It's greed will kill you. I know Gordon Gekko said greed is good. In this market, greed will kill you. So you have to understand the psychology is super important.
There's nobody in that trading room telling you what to do. So what we teach, the psychology of trading is the most important part of day trading to be successful. because we are all the same.
I make the same mistake all the time. Look at that. I'm a freaking genius.
I got diamond hands. It can't go down. Ah, right?
You buy a stock or you short a stock because technical analysis told you to do it. There's only one reason to buy a stock. Price action and technical analysis told you to do it, right?
It isn't because any of the reasons. There are nine reasons. You know, there are a thousand reasons, right?
There are a thousand mistakes. There's nine reasons why you shouldn't or buy it or short it. One reason too, because it sets up technically.
My graduates from my school being Forbes. Bag drop. Bag drop. F*** a mic drop. Bag drop.
Bag drop.