 What's up, everyone? My name is Alex. I'm one of the co-founders of MyInvestingClub.com and I want to let you guys know about something special we're doing for our viewers on YouTube. So the most common question we get asked is, you know, how do I start day trading? So what me and my mentor about it is we create a free two-hour mentorship course for the brand new trader. It's going to be available at MyInvestingClub.co. The link is going to be right here. This is a free webinar that reveals our 12 secrets that every single brand new day trader should know before they start. I also want to let you guys know about something that's very unique to MIC. So if you have any questions about trading or you're curious about trading or you don't know if MIC is the right fit for you, now you can text our head mentor, Tash, whose number is going to be right here and he'll answer all the questions that you have in less than 24 hours. Thank you and enjoy the video. All right. So here we are, March 17, 2020, pretty much in the midst of the worst market conditions I've ever been in personally. I hold one position in the long term that I just added and starting to build some from there. And I'm going to go through a basic walkthrough of how you can determine the value of a stock using one of the equations written by one of the greatest investors of all time, Benjamin Graham. But first before we get into it, let's do some market analysis like we always do. This is an interesting chart that I saw on Yahoo Finance. There was an article that they wrote about the current market conditions and this is discussing rapid stock market declines from or near a 52-week high. We're going to discuss this and then we're going to jump into, I'm going to show you how to find these stocks using thinkorswim and then a couple Excel things and yeah, so good times, good times. So anyway, the worst correction that we've experienced from when the stocks are trading basically at 52-week highs and then they plummet, right? This situation, 1987 was the last pretty like worst like bad situation. Everybody's comparing this time right now to 1929 and in terms of percentages, yes, it's worse than the 1920, it feels like it's worse, Jesus Christ. I don't know if it really is truly, but in terms of percentages, we are almost at the drop of the 1987 tank. So if we just use around idea percentage wise, if we take a look at the current situation and we measure from here, this high right here and we take basically a 35% decrease in value in the market. So 2175 or this level right here is going to be roughly 35% which would put us round about the same percentage as what happened in 1987 and believe it or not, 1987 was faster. When you go back and look at a chart, a monthly candle of 1987, if you just look at the monthly, like I should have dropped in like a month. We're working on, I mean, maybe a month right now and a half-ish, but it's really not as like the time frame in 87 was much shorter. It feels much more exaggerated because of the dollar losses. You know, obviously you see all of these CNBCs and Fox and blah, but then they send money and so on and so forth, they're like a three-tash and point drop and Dow Jones is the first in history. We had the fucking first in history. It's the only time we've had the ability to give back that much price. Like if we had a 3,000 point drop like before, what the fuck? We didn't have that much. We didn't have that much to give. If we did that, it was going to be like, oh, US economy is fucked. I'm moving to the fucking Netherlands and that's it. Going to Denmark. Give me some of that universal healthcare, whatever the fuck they pitch over there. So anyway, so 2175 would be roughly that same percentage level coming from a 52-week high down if we just reference the prior slide. And we're just looking at this going, okay, stock at 52-week highs and corrects. That would be the situation if we are in the same situation, which probably not. Just given all things considered, probably not. We just recently had another federal rate cut. We are officially at pretty much, I think, zero is the rate, right? If I'm not mistaken, the lowest rate has ever been in history. In my opinion, they did this because Trump provoked it in his address or whatever the fuck it was when he was basically saying that the Fed is following behind the action. They need to get ahead of it. And their option to get ahead of it was before we cut, like, what, a half or something? And now we're like, cut it all. Go down to nothing. Take it all out. It's like, whoa, whoa, Tiger, what's going on here? And so they alone may have driven us into recession territory, because it's been proven in past that we've seen. I've shown you guys the charts that when the Fed announces emergency rate cuts, tank is not done. So yeah, it's pretty astonishing. It's pretty astonishing. And I don't think we're done. Let's jump into value investing and discuss that a little bit. So let's talk about some key frames of mind that you need to have, okay? No one knows how he or she will act during an emotional period. So right now is an emotional period of trading. Everyone thinks that they can handle it, right? Everyone goes, I can do it. I'm not going to be emotional. I know when it's time to buy. You buy when the bottom's in. Okay, when the fuck is the bottom in? You know, how do you know? How do you know when the right time is? How do you know? How do you know when that's going to, how are you going to act? Where are you at in your life when that emotional crisis hits? Where are you at in your life? Are you in a financial position where you're comfortable putting in a lot of money in the market and watching it continue to draw down if you're wrong? If you're early, there's no difference in being wrong and early. It's the same thing. Being early is the same thing as being wrong, okay? What is your frame of mind when you're trying to buy these stocks? Are you in a frame of mind where you are comfortable letting it draw down percentage amounts, right? No one knows. No one fucking knows how you're going to act in that situation. If you are completely detached from money and you've got enough money to just, like, you got more money in God, okay, maybe you're detached. No one fucking knows until you're in the heat of battle, right? No one knows. So here we are. One thing to keep in mind is that a great company is a great investment if you pay the right price. So buying good companies is never a bad way to go. Buy companies, you know. Apple, Netflix, Amazon, Google, whatever the fuck you want to do. Facebook, fuck Facebook. But anyway, again, this is all just entertainment for entertainment purposes. So obviously I'm not telling you to go out and buy those stocks. But here we are talking about it. Don't just go off willy-nilly buying great companies. If the bargain isn't there, right? You could be buying a stock, right? Like how would you feel if you were somebody that owned spy at $340 right now? Like, or sorry, $330. Let's say you bought it at $330 because you were like, whoa, Tesla $350 is coming. Fuck it, I'll hold 30% later. Oh, maybe I don't want to hold. Maybe I want to sell it. Maybe I just want to give up. The point when you sell is probably when the bottom's going to start forming. That's how it almost always goes. That is the reason why 50% is usually the recession number. Because people will go, I've lost half of my value. It's time to sell. There's the bottom, right? That's why a lot of people think 50%. If I've lost 50%, that's too much. That's usually the bottom. Psychologically, that's the bottom almost every time. If when we get bailouts, thoughts on focusing on companies in the same sector that don't need bailed out, example four during the auto business. Yeah, maybe something. Obviously, that theory worked out for a lot of people. So you could see something there. But again, these are questions that I mean, you guys are asking great questions. And this is why you have to consider this stuff. And it's not that you just throw in the towel and totally give up on day trading. It's you start thinking about other parts of your life. This is income diversification. Do I sit here in day trade all day as my only form of income? Fuck no. If you do that, not smart. It's going to be very emotional. So this is just a way of diversification. Day trade, swing trade, value and best. And don't buy China Petroleum. What's the watch list for tomorrow? Oh, fuck, nothing. Fuck, literally nothing. There you go, folks. I think we'll end it there. You guys have any questions or anything? Just hit me up in the old DMs. All right, guys. Thanks for watching. Have a good one. Be safe out there. Enjoy.