 What's up, everyone? Today is Monday, May 9th, 2022 at 11 a.m. So a couple of things I want to talk about today before we get started on the main topic of the video, which is bear markets, recession, marketing, everything. So today's the last day of our monthly promotion. So if you go to myinvestingclub.com slash spring, today is the last day to sign up for our membership. After today, we are not bringing back the monthly membership anymore. Pretty much, guys, we're also doing a giveaway where you can win an annual membership and you can win a free one-on-one mentorship phone call with me. Also, as of today, I'm going to announce that next month on June 13th, which is on Monday, we are hosting a live trading event for MIC members only and success trader clients only. So if you join MIC, if you are part of our membership monthly, annual, or lifetime, next month on June 13th, we're going to have a live trading session. So basically we're going to start around 8 a.m. and it's going to probably go until 11 a.m. or zombie time where you get to pretty much watch Bao and I trade live and execute live and you get to learn about how we trade and we're going to answer questions. So this is going to be exclusively for MIC members only. So it's the last day to take advantage of our promotion and this is like a mini boot camp, mini live trading boot camp that we're doing. It's not going to be presentation. It's basically going to be straight to business, how I build a watch list. You get to watch me and Bao trade live for a couple hours and it's going to be for MIC members only and success trader clients. So if you are a success trader client, but not an MIC, all you have to do is send me proof. You can send me proof on Instagram, Twitter, whatever it is and I'll send you a link to get into the live trading, right? And if this goes well, again, obviously nothing crazy. We're thinking about doing more, maybe once a month doing something like this. So again guys, this is your last chance to sign up and be part of our live trading event next month, right? So June 13 is what I'm thinking is a Monday, that way when everyone has Monday morning FOMO, we could talk about the trades on the day, we could trade together. And yeah, that's going to be the main thing that we're working on now is a live trading event. So should be fun guys and that's going to be next month. So if you want to take advantage of the promotion, it's at myinvestingclub.com slash spring and it's the last day for. So let's talk about the markets today. So as I'm recording this spy SPY is at $401. It's crazy, markets are tanking. So number one thing is a lot of people have been asking me, are we in a bear market? Is this a recession? And if it is a bear market recession, how are we able to make money? Is it possible to make money? Okay, so one thing I want to educate you guys on is something called short selling, okay? So a big thing that people don't understand is you can make money when stocks go down. Our entire strategy is based on stocks going down, right? I am primarily 99% short bias, which means when stocks go down, I make money, okay? So number one, there are two ways to make money in the market. When stocks go up like Warren Buffett or when stocks go down like Michael Burry from the big short, okay? So our strategy is mostly focused on the Michael Burry method of shorting, okay? So in these bear markets, when people are losing their ass and stocks are tanking, the MISC strategy will teach you how to make money when stocks go down. So that's number one, guys. So if you are mostly a long-bias trader, you could realize that in 2020 and 2021, long-bias were great. You made a shitload of money, but now you probably lost all your money and more. And now more than ever, it is important to learn the other side of the market, which is called short selling, which is what we specialize in, which is what we do and that's what we use to make money in this market, okay? So let me kind of explain that a little bit more in depth, okay? So we've been in a bull market. And what a bull market means, is stocks just go straight up, okay? They may dip a little bit, but then they go straight up. They may dip a little bit and they go straight up. They dip a little bit and go straight up. A bear market is the reverse. Every single bounce gets sold into. Every single bounce gets sold into. Every single bounce gets sold into, okay? So what you have to realize in these markets, guys, what worked in the last couple, I try to make a point of this every single video so that you guys wake up and you guys understand that what worked the last two years in 2020 and 2021, it does not work anymore. That market condition does not exist anymore. That market condition will probably never come back anymore. And because of that, you need to learn how to adapt and you need to learn how to change, okay? So first of all is, in these markets when people are losing their ass, in these markets when people are losing money, we're still doing pretty well. We're doing well because our strategy is focused on short buys. So when everyone else is losing their ass, buying stocks, buying stocks that keep cratering, we're the people that are shorting stocks and making money when the stocks go down, right? So a main thing, a main thing is what is a bear market feel like to trade in, right? Because a lot of the people that started trading, a lot of people ask me, they see my nice car, they see my nice watches, they see my whatever. And a lot of people, they ask me, what do I do for a living, right? What do I do for a living? And I'm kind of embarrassed to say that I'm a trader because when I tell them that I'm a trader, like, oh, me too, I'm a trader too, bro. So what I like to do is I tell people, I've been trading for eight years. I tell people that I was trading before trading became the cool thing to do because everyone's a fucking trader, right? Everyone's a fucking, someone has some position in the market or whatever it may be. So I'm embarrassed to say that I'm a trader because they think that I'm just like them, right? I'm just a guy that maybe hit it big in the last year and that's it, right? And what you guys have to realize is a lot of people started two years ago. It started during the pandemic and they've never seen either a slow market cycle, they've never seen a choppy market cycle, they've never seen a bear market, right? So I've been around for eight years and I've seen a pretty decent amount of things but Bao, who the guy that taught me how to trade has been trading for 20 years and he's seen the bear market, he's seen exactly what happens, right? So I wanna be surrounded by people that have been in this similar market condition to understand how to make money in these conditions. So in a bull market, stocks go crazy. You get 50, 80, 100% gappers, you get five of them a day and it's basically pick your poison, you pick one of them and something's bound to fucking go up, right? And in these markets, guys, when a bear market happens, when a recession happens, not only are there less stocks to trade, there are less opportunities to make money on these stocks, right? So for example, something like SOPA, SOPA. SOPA had a 50% gap, let's say and it was trading in a 20 cent range. It's very hard to make money when stocks are moving in a tight range. As day traders, we make money on the volatility. The more volatile it is, the more room it has for us to make money. For example, if a stock like Tesla is moving $50 a share every single day, there's opportunity to make money on that rather than if it was just moving 20 cents a share a day, right? If it was moving 20 cents a share a day, you can't make money. So a lot of these small cap stocks, guys, the range tightens up. So when the range tightens up, it gets a little bit more difficult to trade it. So imagine, you have a stock that has low range, you have a stock that, instead of five stocks that are moving on the day, you have one stock moving on the day and if everyone's on the same side of the trade, the opposite thing is gonna happen, right? So these markets are very choppy, they're very dangerous, they're very sporadic, they're very random. And what I found is the best way, the absolute best way, as the same things we've been preaching for years, the absolute best way to make money in a slow market, in a bear market, is to size down. Now why, right? Why? Okay, I'm gonna explain to you how trading works. Trading is a game of waiting for a specific pattern, okay? And when you see that specific pattern come up, then you bet on it, okay? So let's say for example, you know that your friend, every single time he drinks a bottle of tequila, you know he's gonna fight someone, okay? You know that that, for a fact, you know that when your friend finishes a bottle of tequila, he's gonna fight someone, okay? So your bet is that when he drinks a bottle of water, he's not gonna fight anyone. So why bet on that? But when your friend starts drinking half a bottle of tequila, you start betting that he's gonna fight someone, he finishes the full bottle, and you go all in that he's gonna fight someone, the same thing with trading. We're waiting for a specific pattern that we've seen happen over and over and over again. And when that pattern presents itself, that is when we're betting, that is when we're sizing in, that is when we're trading. So in a bear market, we don't see our patterns as much anymore, right? It doesn't mean that the patterns work. I mean, it doesn't mean that the patterns don't work. It just means that it's not right now, it's not optimal for it, right? So as a trader, as a trader, I'm waiting. I'm waiting for my pattern to come up. I'm waiting for my best strategy to come up. For me, that's first red day, right? That's, for me, that's first red day. So that has been a first red day in a couple of months. So why am I trying to bet big? Why am I trying to gamble at this point, right? In trading, we're waiting for our ideal setups. And in a bear market, we must be even more selective waiting for our ideal setups because until then we might get mentally exhausted. So for example, today I made like 500 bucks. It's a great amount of money for a lot of people, but my average is 10 times that, right? 10 times that. So for me, I'm thinking in the back of my head, all right, while the market condition is non-optimal, while my setups are not there, while I don't have an optimal edge, I'm probably not gonna size up. And because I'm not gonna size up, I'm gonna size down. I'm gonna treat every day like a normal day. I'm just showing up to work. And when that opportunity does present itself, when I do have the chance to have a first red day, then I'm going to size up. So if you find yourselves getting chopped up in this market, it's probably because you're oversized, because maybe you've been losing for the past couple of weeks. And maybe you're trying to compensate by sizing up. Or maybe number two, you're trying to do what worked last year, trying to make it work this year when the market has completely changed, right? So think about me. I mean, millions of dollars in the last couple of years, right, millions of dollars. And now I'm trying to make hundreds of dollars, right? Hundreds of dollars. So I am humble enough to realize that right now is not the time to push, motherfucker. Right now is not the time to push. Right now is the time to put on the flat jacket, the parachute, the seatbelt, hold myself and just pray that I don't fucking lose my ass, right? Because as you've noticed, whether it be on Instagram, Twitter, YouTube, all the other people that were starting to trade or made big money in the last two years, they lost all their money. You don't see these crazy ads on YouTube anymore with Lambos. You don't see these people flashing their watches. You don't see these people flashing tens of millions of dollars in profits because they fucking lost it all. Can you imagine in the last two years if you lost all of your profits in one year, that probably happened to 90% of the traders here, right? So if you lost money this year after making money for the last two years, it's probably time for you to change your strategy and adapt, right? So when markets go up, you could be Warren Buffett, bro. You could buy these stocks and hold them from Kingdom Come. But when the markets are taking, when the market is crashing, when every single stock in the market is crashing, you have to put on your Michael Burry hat from the big short and start thinking about different strategies and different ways to make money in this market. And for me, that's been short selling. For me, it's been sizing down. For me, it's been walking away. So in this off time, we're using that time to help members even more, right? Now I have extra time to focus on members more one-on-one. I have extra time to help build more content. I have extra time to throw a live trading event, right? So when the markets are slow, when we're in a bear market, when we're in a recession, which I think we are in if not entering already, because I mean, obviously it sucks to say, but all the tax money that we're paying to the government is all going to Ukraine. Yes, they need help, but Americans need help too. So a lot of Americans don't have any more money anymore, right? A lot of Americans, whatever stimulus they had in the last couple of years, all gone now, right? It's all gone. They either spent it on the Gucci store or they spent it buying AMC and GameStop, right? So a lot of Americans don't have that disposable income anymore. A lot of Americans don't have any money anymore, right? And that's the point, guys. You guys have to realize that the world is changing again. The world has changed again. In 2020, the world changed. In 2022, in a world of high interest rates, the world has changed. Let me tell you a little bit about interest rates, guys. I'm no economist. I'm no expert. I'm no genius, but I know this. What happened in a world of low interest rates or zero percent interest rates is a lot of these companies, Apple, Facebook, Amazon, whatever it may be, what they did is this. They went to their bank and said, hey, bank, I wanna borrow $50 billion from you at a 1% interest rate, which is basically free. And what they did is they took that $50 billion that they borrowed from the bank instead of fixing their infrastructure, instead of buying a new warehouse, instead of giving their employees a raise, they took that $50 billion and started buying back their stock. Now, all of a sudden, guys, you get artificial pumped prices from companies buying back their shares in a low interest rate environment. And fuck, bro, a lot of these companies went up 30, 40, 50%. So imagine you pay 1% for your stock to go up 50%. You make shitload of money. So now in a world where interest rates are going up, companies are not able to afford the same type of buybacks that they've been doing, which is causing all these prices to go down, right? So a lot of this market, a lot of this S&P 500, NASDAQ's all artificial. It's all artificial. It's all based on borrowed money. So as the Federal Reserve keeps raising interest rates, this borrowed money is gonna dry up, which is gonna cause a lot of these things to keep going down. Now, I don't want the market to go down. I want this shit to keep going up forever so that we could all make money. But the point is you have to realize that the environment has changed. The world has changed. We are in a recession. We are in a bear market. The S&P 500, NASDAQ is down 30%, 40%. Individual or stocks are down 75%, 80%. Crypto is down fucking 60%, right? Everything is down. Everything is down. So instead of trying to find the bottom, which who knows when it's gonna come, you guys might have to join the dark side like me, like Bao, like Michael Burry from The Big Short and start learning how to make money when stocks go down. Because if things reverse, now all of a sudden you add another tool to your tool belt. You could keep buying stocks and they could keep going up. But you still wanna be able to make money when things are going down and that's how we make our money, guys. We make money when stocks go down and not only do we make money on large cap stocks, we make money on small cap stocks. We find the biggest scams in the world and bet that they're gonna go down and I don't wanna give away too much of the strategy yet for those that are not in the club. But you guys are gonna see it on the live trading event. You guys are gonna see us trading live. You guys are gonna see how we execute live. You're gonna see how we build to watch us live. And in a bear market, when 90% of traders are losing, even if I make $1, I'm doing better than 90% of the traders are out there, guys. So this all makes sense to you before I continue. I try to talk about interest rates. I try to talk about buybacks. I try to talk about bear market strategy. I try to talk about how to make money in bear markets. So if you guys have any questions on any of those topics before I continue to the next topic, let me know. Obviously, if you're watching the replay, this is a live video. If you're watching the replay, you can leave a comment and I'll be the guy that responds to it. But before I continue, does anyone have any questions on those topics that I talked about? And does that make sense to you guys? So I'm just looking around to the markets. Okay, so now next thing is, let's do an audience Q&A. So what I wanna do, guys, is I wanna open up the floor to you. This is your opportunity to talk to a multi-millionaire trader and have your questions answered for free. So in the live chat box over here, type in your question. Hopefully, it's a relevant question. You don't ask me what my shoe size is, but let's go into a brief Q&A before we continue. And if you wanna take advantage of the MIC promotion to possibly win an annual membership and to win a one-on-one with me, go to myinvestingclub.com slash spring. And again, this live trading event is for MIC members only and success trader clients only. Shoe size reveal 10 and a half. You could send me some Yeezys if you want. So any questions, guys? Do you use wider stops on smaller range stocks like today? I mean, it depends. For me, rather than using wider stops, I rather use small size. So it's almost a combination of small size and yeah, small size is the best. I just signed up, I don't have access. I'll check on that after this video and just send me your email or send me something to verify you and I'll fix that in a sec. How is it possible to short with a small account? There's plenty of brokers out there like trade zero that you could open up a small account and trade with. Obviously, if you have a bigger account, things are cheaper, things are better, but I started with a small account and I built my $2,000 account into millions. Short or puts? I mean, you could use calls and puts for large caps stocks, but for shorting, I like to focus on small cap stocks. Is the global market bearish or bullish? I think it's bearish as fuck. Every single thing is down. The only thing that's not down is real estate and real estate is gonna come down because the mortgage rates are almost at 6% now. So real estate is a lagging indicator. Real estate takes about six months to kick in and when fucking mortgage rates are 6%, no one's gonna be fucking buying a house, man. Well, the market go bullish this summer, do you think? I have no idea. Here's the thing, guys, on Wednesday, we are getting the CPI number, the consumer price index number. This number measures inflation. So on Wednesday, if the CPI number is high, if inflation is still high, markets are gonna continue to tank, but if the inflation number starts to slow down, then the Federal Reserve could come out and pivot and say, you know what, we're not raising interest rates anymore because inflation is under control. So in my opinion, Wednesday is gonna be a very big day for the overall markets when the CPI number comes out. CPI is pretty much the inflation number, guys. So if it's high, the market's gonna keep tanking because the Fed is gonna keep panicking. If it's low, the Fed will pivot and not raise interest rates as fast, in my opinion. Yes, we teach large caps, options, swing trading, small cap, long, short, everything except futures. When will the global market be bullish when inflation starts to slow down? Even as a short seller, you'd prefer to have a bull market because you feel like there's more opportunities, yes. In a bull market, short sellers actually make even more money because the moves are so exaggerated to the upside that when they come down, they are just as exaggerated to the downside. Any other questions, guys? As a short seller, would you consider trading larger than you did today if the bear market continues? You trade size based on the opportunity, guys. So if there's a great opportunity in the markets, I'm gonna trade size bull market or bear market. It just depends on the opportunity. Are you looking to buy the dip on spy? I mean, guys, what I like to do is I like to funnel some of my excess cash into markets and to real estate, whatever. I mean, I'm not an investment advisor. You could do whatever you want, but the lesson that I've always taught is you always buy when people panic and you always sell when people are the most calm. So I think people are panicking now. Do I think Biden caused it? I think it's a matter of the multiple trillions of dollars that were printed during COVID. Is there an option to join just for the chat room if you're an experienced trader and just see chat process? I mean, just join the full membership, guys. There's no, you get half and half, get everything. And honestly, no offense, but as experienced as you think you are, you could always learn more. I've made millions of dollars and I'm always willing to learn more. When do you hit the bid versus throwing up offers? I only hit the bid on a first red day and other than that, I wait on the ask on bounces. Oh, also guys, if you go to our website, MyInvestingClub.com, on the top right section, there's a button that says, book a call. So you guys could start booking free mentorship phone calls on the MIC website, totally for free. So if you're struggling in training, if you need a little bit of help trading, and this is for non-MIC members, we have some small time slots to help you out for free. Any questions, guys? How does the success trader MIC rebate work? Okay, so the way it works, guys, is you use the MICL route. And when using the MICL route, it is a post-only route, which means that it will sit there until it adds liquidity. When it adds liquidity, you're gonna get a rebate that's gonna be higher than your commission. So if you're trading it on January, your rebate is gonna hit the account on February 20th. So I think it hits six weeks after you trade it, right? I guess that's like some regulatory thing. I don't really know what it is. But basically, the rebate you get gets credited the next month. So if you trade it in January, you're gonna get it credited in February. You think you could go from 10 million to 100 million as a trader? How about you start getting to 100k first? Once you get to 100k, then you could talk to me and then we'll worry about 10 million to 100 million. All right, guys, this video is a little bit longer than I was expecting, so I'm gonna wrap it up here. If you guys have any questions, you guys can leave a comment on the video. If you guys wanna join MIC, today is the last day to do it, myinvestingclub.com slash spring, and I will see you guys at the live trading event next month. So thanks, guys. Leave a comment.