Strategizing For The Future: Interview With The Megacast (9/2/2022)

I met with Tyler from The Megacast to discuss who we are at The Brown Report and what the fluctuations in the market could mean and how you can best prepare for it.  

Some people are saying to get out of the market and take a break, while others are encouraging people to get in and buy now while prices are low.

First, you need to figure out what kind of investor you are... long-term or trader. For long term investing, history shows that the market always goes up. Almost every day is a good day to buy as long as the market goes up over time.

If you are a trader (or trade options), you can make money when the stocks are falling. We don't have to put money away and wait for the market to rebound in 20 years, we can actually make more money from stocks falling because they fall faster than they rise.

So know which game you are playing... if you're playing long-term, it's a great time to pick up stocks at a discount. If you're playing short or medium-term, it's a great time to make money while the stocks are falling. 

Short-term trading can be a risky move... how do I help people to figure out whether that is a smart decision for them?

While there is never not ANY risk, if you understand the market and know what you are doing, it should never be considered "risky" - we are not gambling, we are trying to make smart decisions. 

Think of the weather forecast on the news. If you know what to look for, you can see the signs. If they tell you there's an 80% chance it's going to rain, you're going to grab an umbrella and except to possibly see some rain.

It's the same with trading, we look for that 80 or 90% chance that stocks are going to fall or rise, and that's when we take our shot.

There will never be a 100% chance opportunity, but once you learn the market and chart set ups, that 80-90% chance is what you'll need. 

How do I coach our members that are starting off with a smaller account, or just easing into the market?

The last thing we want anyone to do is throw their life savings at the market and potentially lose it all.  

To get started, you actually don't even need any money at all. We want our members to practice paper trading first. Paper trading is essentially a simulator for trading the market without the financial gain/loss component. 

You can take the time to practice getting out at those 80-90% chances. We like to suggest someone being right seven out of ten times... once you hit that 70% success rate, you should be ready for real money. 

Or, if you're paper trading and coming out profitable even if you are wrong more times than you are right, you should also be ready for real money trading. Staying profitable is the goal even if you are wrong a few times. 

At the end of the day, you don't have to put up real money to find out what you didn't know.

How helpful is a stock market coach, even if it's just to get started?

People have a high emotional tie to their money. There is a lot of pressure when you are potentially able to lose. 

Being a coach, I get to come in and help members detach from the emotional relationship with money. By removing that emotional attachment, you can look at the chart and strategies for what they are. Sometimes the answers are right in front of you.

The two main emotions we usually see are fear and greed. You either fear you're going to be wrong or you get greedy thinking "this is going to be the one" when you should have taken the profit and gotten out.

My job is to remind you of your game plan and that the stock may turn around. If you do decide to hold on to that stock, I can coach you on how to best protect yourself so you don't give all of your money back. 

If you were to ask people how they lost money in the market, a lot would say they "didn't see it coming". They may have been so focused on how much they were going to lose, they froze... and then lost it all.  

As a coach, I can also help you realize other strategies are available to make money when the market is falling or going sideways.

What are some common mistakes you see when people are just entering the market?

1. For those that are investing with a 401k, sometimes they can't take advantage of the employer match because they need every penny from their checks. Or they delay enrollment and finally enroll five or ten years later. If you can part with some money, have it automatically withdrawn so you don't even see it. If you're able, you can adjust and figure out a way to accommodate without it. It's better to deposit something than nothing.

2. Some people think a small amount of money isn't going to make a difference. Even $50 a month will add up over time. At the end of 12 months, you'll have $600 plus interest. The next year, $1200 plus interest, and so on. The point is to start saving, even if it's just $50 a month. 

3. Assuming the "financial gurus" of the world are smarter than you or special. It's not that anyone is smarter or special, it's about the information and experience they have. There isn't anything set aside specifically for these individuals. If they can buy Apple stock, so can you. It's about the knowledge of the market. Once you have the knowledge too, you can get some version of their success.

At the end of the day, we want to help provide educational resources for our members to make the best decisions for themselves. 

Interested in learning more about the market? Check us out at Power Trades University to learn more.