STOP Shorting This Market This Is Why 90% of Traders Are Getting Cooked?-MP3

Rashad Bilal (0:00)

Pushing to highs.

SPEAKER_2 (0:01)

Yeah, people getting squeezed out of those positions. Nasdaq hit an all time high today.

Troy Millings (0:05)

Cooked.

SPEAKER_2 (0:06)

S&P is not far from it, Dow is not far from it.

If you're just looking at trajectory, I mean, you would know, but that's something that people don't, they see it like, hey, it's hit an all time high. It has to pull back at some point. And yeah, eventually it will. But look at the trend line before you make that decision.

Troy Millings (0:23)

Look at how much money is just pouring in from 401Ks.

Like, in order to short NASDAQ and the Dow and ES, Nikkei, Cospi, they're telling me that the trillions of dollars that are being pumped in, the 401Ks and money market funds and like, you're trading the direction wrong. Go with the predominant direction. Look at the month chart first.

SPEAKER_2 (0:45)

Hey, tell them the company. Why don't you do that?

Troy Millings (0:52)

Stay tuned.

SPEAKER_2 (0:54)

I didn't like it either. I didn't like the company either.

Troy Millings (0:56)

Yeah.

Rashad Bilal (0:58)

But I will say this though, it is good to have multiple different, because I spoke to Troy about this as well, especially with the options. You gotta have multiple things working for you at the same time. If you put all your eggs in one basket and that goes south, which any option trade can go south, then you're screwed.

Troy Millings (1:17)

You get a better basket.

Rashad Bilal (1:19)

With that's what I'm saying. You gotta have multiple options working for you though.

SPEAKER_2 (1:24)

What are you saying? Like multiple positions?

Rashad Bilal (1:26)

Multiple calls. Yeah.

SPEAKER_2 (1:28)

Can I just add a caveat? Because I agree with you.

In the same company or not in the same company?

Rashad Bilal (1:33)

Not in the same company.

Yeah. Now, everybody's budget doesn't afford them to do that.

I understand that. But I'm just saying, you give yourself greater chance of winning the more position. That doesn't mean you have to have a million positions. But if you just put it, all right. If you have $50,000 and you're saying, okay, if I can get a green jacket, and I'm going to put $50,000 on one option call. No stop loss. With the anticipation that that $50,000 is going to turn into $500,000. That to me- That's dangerous. Is ill-advised.

Troy Millings (2:13)

Yes. Especially if you don't have incredible accu- Like we can even talk about this one, like the five serve call. He's like, hey, I got in, in the stock 169

Um, you think my January calls are cooked? I'm like, the company's cooked. Like, to your point, if he would have did Google, Microsoft, Micron and spread the risk out, he wouldn't have had as much- Because we all have met people when they approach you and ask about the portfolio, you can feel the fear that's coming out of their energy, right? You have to reverse it. Same with 2Tech, 2Index%, and same with Futures. That's why I say Trade, ES, NASDAQ, Dow, and the bond market.

Rashad Bilal (2:54)

Well, because also what happens is, when you have a company, a trade that goes well, you said, I should have put more money in.

SPEAKER_2 (3:03)

There we go.

Rashad Bilal (3:03)

Always. So then the next time around, you up your limit. It's like being at the table in Vegas. So now you was playing at the $5,000 or $10,000 table. Now you playing at the $20,000 table.

And so you up your limit on the amount of money that you start putting in.

And you got to be careful with that too, because now your strategy has changed and you're going in with the anticipation that alert my lesson last time, because I made 500%, but I only put $5,000 in. This time I will put $15,000 in.

And then when you put the $15,000 in, you'll be down 79% in two weeks. So you got to be disciplined with that too, because once you start to say, okay, now I'm going to put larger sums of money in, because of that, it doesn't always work out in your favor.

SPEAKER_2 (3:55)

Yeah, that's why you got to be super strategic. So based on that, it's like, it starts with the one, right? So let's just take Micron when we did this in 2024 It started with one contract. Most people didn't even believe in that contract. And it was like, okay, we pulled back. We started at 110 The first call was at 110 Dropped down to 83 We were down 60%. I said, we're not moving. In fact, as it creeps back up, we're gonna let it pass the threshold. If that 110 call now goes up 50%, I think we're gonna have a nice run, right? So then you add to that, right? So like when I'm talking about when I stack them, and sometimes you'll see like these polls in my stories, it'll be like, how do you get all these calls? Well, it started hitting thresholds and I'm watching the trend, right? So if it clears 200, now we're looking for a 215 Oh, and it just keeps going up to the point now where we were at 1,100, in June we were at 1,200, but people are looking at it and they say, wait, he's in a 230 call? Well, we got the 230 call when we were sitting at 170 You feeling me? So that's why I wanted to make it a distinguish between, are you doing it in the same company or are you doing it in a multiple? So first get the foundation. I always stress to people, foundation, foundation, foundation, whether that's an ETF or whether that's an indexes, and then have some individual equities inside that foundation.