 I'm just gonna get started guys What's up everyone happy Monday today's YouTube live day, so? Lot of stuff to talk about guys I want to kind of get short and to the point on this video today So this video is gonna be talking about stock splits in general Reverse split forward split and the news that just came out today is the Tesla stock split So let's start off with what is a split and how that works and what it is there's two types of splits guys There's a reverse split and a forward split, okay? So the best way to imagine this is like imagine you have like Let's do this Let's make a posted note Let me write Tesla on here one second, and I will explain this So imagine this posted note is Tesla Tesla stock. This is the entire Tesla stock What a what a forward split means this if Tesla stock is at $1,000 here. Let me just do it here $1,000 Okay, this is Tesla stock Forward split means what happens is this this is still Tesla stock, but if they do a two-for-one split It is still Tesla stock, but instead of it being a thousand dollars It's five hundred and five hundred the stock is still the same the value is still the same the post It is still the same value But there's basically, you know giving you more shares for less of a price so five hundred and five hundred equals a thousand So that's how you could remember a forward split, right? So this is what Tesla is doing We don't know what how much split they're doing if they're doing a two-for-one it's two if they're doing four This is what it would look like and each piece would be two hundred fifty dollars two hundred fifty dollars two hundred fifty dollars, right? So that's how you could remember a forward split and now is a forward split a good thing or a bad thing for a company guys and The truth of the matter is for these large-cap companies for these mega tech companies for these biggest companies in the world It is probably some of the best thing that they could do for their stock, right? And why is it the best thing that they could do for their stock? So for number one? Let's give Tesla as an example. Tesla is trading around $1093, right So for someone like an average investor that maybe has $5,000 let's say that wants to invest in the future or whatever it is If Tesla's at $1,000 you could only buy five fucking shares, right? So technically it kind of turns people off it turns off the small guy to being able to buy a piece of these companies, right? Think about something like Amazon Amazon is $3,000. So if you have $5,000 you go buy one share one share You want one share? Amazon it doesn't make sense mentally it doesn't make sense for people so a forward split That companies do is great news for the company because the average investor the average guy Could now buy the stock now. Why is that a good thing? It's because now There's more demand coming into the stock with the same exact supply It's the same post-it note, but now more people want to buy it more people can't afford it So this caused the stock price to go up usually Apple is historic for doing stock splits Apple is the biggest company in the fucking world almost three trillion dollars. Okay The reason why Apple continues to split their stock and keep their stock at a low price You know, it's trading around $170 whatever it is is so that the average guy could buy it, right? And when this happens the average guy could afford it and it keeps going up essentially, right now What has happened? Let's just use previous history To be able to predict what is gonna happen So the last ten times that Apple stock has split it has gone straight up, right? The last two times that Tesla stock has gone Split it has gone up, right? It's gone up because now let's say for example They do a five for one split random number thrown out five for one split now all of a sudden that guy that has $5,000 to his name instead of being able to buy five stocks He's able to buy multiple multiple more, right? He's able to buy way way way more and to them that average investor That makes them feel more confident that makes them want to buy it and that essentially makes the stock price better So if you've noticed Amazon Google Tesla three of the biggest companies in the world have announced stock splits this year, right this year call it their way to Get hype back into their stocks Call it their way to get excitement back into their stocks call it their way to manipulate the stocks, right? Whatever it may be but a stock split a forward split for a large cap mega cap Big-ass tech company is some of the most bullish news that is out there because Because now there is more demand because the stock price is more affordable and when there is more When the stock price is more affordable when there's more When the price kind of is lower, right it now means that the stock is more liquid for people So for example, if you want to try something like fucking Amazon, right? If you want to try something like Amazon, there's a spread, you know The spread is five ten fifteen dollars Maybe if you want to try something like Google the spread is five ten fifteen dollars maybe But once the stock splits the spread shrinks to almost a penny So now the stock is gonna be way way way more liquid for people So for the people asking is Tesla stock price splitting bullish? Yes, but now Something that we got to pay attention to is the day that the split Actually happens Now is that a potential sell the news setup? So they'll run up the stock run up the stock run up the stock until that split date and Then when that split date happens that has a potential sell the news setup guys So that's something that we have to remember for ourselves. So it's okay to ride the momentum on the way up It's okay to do that. I mean right now Tesla is probably gonna hit eleven hundred dollars, which is ridiculous ridiculous, but you know Stock market is game of supply and demand if there's more demand for Tesla stock Whether it be because gas prices up people want to afford electric vehicles whether there's a bullish split whether earnings Whatever it may be guys It's a game of supply and demand and by doing a stock split by doing a forward split It increases the amount of demand and a hype in a stock which creates a type of move that we're seeing now guys So based on previous history of Tesla splits It has gone up since its split based on previous history of Apple splits. It has gone up since the split Now we're gonna see Amazon and we're gonna see Google do the same thing all of a sudden these $3,000 stocks Are gonna be a hundred and fifty dollars. That doesn't mean that they lost 95% of their value It is the same exact company just broken up into little smaller pieces for the average guy to afford So instead of one guy being able to afford one share you're gonna give a share this guy You're sure that guy it makes it more a symmetrical the same thing, right? It's the same exact company But now with more demand coming in because the price is lower, which is perceived as a discount as well, right? So keep that in mind guys. So anytime a mega cap company Has some sort of split it's or some sort of buyback or something like that. It's very bullish news It's good news, right? So it's gonna be very interesting to see how Tesla pays out I think their all-time highs are around like 1200 so it's almost like 10% away from all-time high So we were it's it's crazy. It's crazy this stock. I mean, it's absolutely abnormal and I'm just in shock almost But that's something that's something to keep in mind guys. So that is what a fourth split is now What is the inverse? What is a reverse split? Okay, cuz reverse splits happen to and those are not good news Okay, so now we broke our company up into four little of pieces Okay, we broke our company up into four different pieces right piece number one piece number two piece number three piece number four, okay? Now a reverse split is essentially the polar opposite, right instead of giving you more shares and Then the price gets lower You're gonna get less shares and the price is gonna get higher So imagine let's say Tesla right now was at two hundred and fifty dollars right two hundred fifty dollars Tesla was that a Reverse split means that now 250 let's say it's a four for one split right four for one split 250 now all of a sudden these four different pieces that are 250 to 250 250 250 250 instead of having four pieces and now becomes one piece worth a thousand, right? so essentially a four a reverse split is what drives did a Reverse split is what all these small cap pump and dump companies do because their price keeps going so close to fucking zero That they reverse it back up right so In my opinion guys in my opinion a reverse split is horrible news right horrible news because there's literally no demand for the stock and They're trying to create Artificial demand for the stock by making the price a little bit higher Essentially a little bit higher so that people think oh my god. There's a good fucking company I gotta buy because the price is going up, but in reality Nothing has changed in that company guys So be very careful between a reverse split and a forward split a forward split for large cap companies is a great thing a Reverse split for small cap companies is all horrible thing right horrible That's why you see some of these share prices 583 thousand six hundred twenty two dollars. It's not because the stock hit that price It's because the stock has reverse split so many times and that's what it's been down to you guys So be very careful of reverse split plays, right? So that's just something to keep in mind guys So in my opinion this Tesla forward split is very good news Just like it's good news for Apple just like it's good news for Amazon just like it's good news for Google that Historically split their stocks to make regular people be able to afford them which causes higher demand for these stocks Okay, that's number one. So do you guys have any questions on that before I continue? Okay, so next thing I'm gonna talk about guys is a Few weeks ago. I made a day trading vlog where I kind of walked you through my day in the life of Trading my computer my setup how I trade how I prepare for the morning whatever So I have another one of those coming out Hopefully this week and that is the day that I was trading INDO So INDO was an oil and gas runner that was running with the crazy price of oil I was actually long INDO and I made a pretty decent amount of money on that trade and that entire day that it Went from like I think $15 to like $30. We have it captured on footage. So what I'm gonna do is I'm gonna walk you through my pre-market plan On the day you're gonna see me executing trades You're gonna see my P&L live and then at the end day we're gonna recap my trades on the day So maybe trying to make you guys more of these vlog style videos I'm gonna try to make you guys more of this style of content. So be on the lookout later this week for another day In the life of a trader You're gonna see me trade commentary all that stuff and then let me know your feedback as well Let me know what you guys like about those videos. Let me know what you guys hate about those videos I took a lot of feedback from the first vlog It's called day in the life of a millionaire trader You can look it up on this channel But I like kind of doing those videos because they're different My cameraman is actually one of my close friends. So he asked me questions about trading. So we talk about prop firms We talk about psychology. We talk about live trades. You see me go long INDO You see me go short IMPP and that was actually recorded two or three days before my monster, you know $680,000 a day, right? So you guys gonna see that that's gonna be later this week So do you guys have any questions for me, whether it be splits? Day trading stuff, whatever it may be We'll kind of go through a quick Q&A now before I kind of get back to answering questions from the members guys And also if you are a brand new trader or you don't know about MIC, you don't know about training We put out a free webinar course. There's a free educational course at myinvestingclub.com webinar Totally free you get to learn our strategies for free our executions for free basically a bunch of stuff for free guys So that's my investing club comm slash webinar. So do you guys have any questions for me? Whoa AMC went crazy. What the fuck even games not one crazy. That is fucking sick That's crazy man. That is very crazy. Yeah, that's great. That's setting up as a big trade All right, let's go All right guys any questions I want to try to keep these videos short and sweet so that you guys have you know a good attention span because these videos are 45 minutes Or an hour long you guys are gonna pay attention to it. So Any questions How would I trade the meme stocks? Potential first red day if it comes Do you think Tesla is gonna slow down and go down a bit? Maybe but I think into the split date It's gonna slowly keep running up and running up and running up because it technically has no reason to come down because now There's a forward-looking event Forward-looking event is a stock split and the last time Tesla did a stock split. It went up like it Doubled before the stock split. I don't think it's gonna fucking double but So game stop AMC all this stuff guys potential first red days is what I am watching for Look at till right anything else guys, you know guys I make these videos for you So take take advantage of you know using a millionaire trader to help answer your questions Because I don't know how often you know You're gonna get the opportunity to do this Quick question on first red day. What was your risk on IMDO amount? I mean if I was risking to make seven hundred thousand dollars. I mean shit, bro I was risking two hundred thousand if I had to three hundred thousand four hundred thousand Those those are not the questions used to be asking because everyone's risk number is different I could have said I want to risk ten million dollars, right? Question you should be asking is why the hell did I size up on that day? That's the question you should be asking And what's the answer to that? It's because that was the first red day setup What is the best way to learn go to my invest in club comm slash webinar and learn for free What's your second favorite setup besides the first red day? I like shorting sympathy plays So let's say there's a main hot chick runner like IMDO I was showing the sympathy play IMPP and you're gonna see that exactly in the vlog That's actually why I like the vlog because it's more of the pre-market plan So I'm kind of showing you guys how I'm planning for these stocks before the market opens I think that's it guys I think I'm gonna call it a day there I want to kind of keep this video short this week if you guys have any more questions or reverse splits or anything else Leave a comment. I'm the guy that responds to all the comments in the videos You guys have any questions in MIC feel free to DM me, but I have a lot of questions I got to catch up on from the members So I'm gonna take care of that and I hope this video is quick short and sweet and helps you guys