The Hidden Trading Secrets of Wall Street (a 7 part series)
Have you ever felt the stock market was rigged against you? What if you could learn the trading secrets that Wall Street has kept hidden?
This is the first of a 7 part series revealing the secrets you must discover if you want to trade the stock market and win!
Here's the good news: You can learn these secrets.
Here's the bad news: Most people never do learn them. And that's exactly why the vast majority of traders never make the kind of money they could from trading the stock market.
Here's What You Will Learn:
- Secrets for better trade analysis
- Secrets for controlling emotions
- Secrets for lowering your risk
(00:20):
[inaudible] hello,
(00:23):
Welcome to the seven trading secrets presented by trade Maestro. My name is Jeremy Whaley, and I'm going to be sharing these seven secrets with you because after all they are my secrets. These are all things that I've learned over the years of my own personal participation in the stock market. As I have not just traded it myself, but also as I've taught other people how to be involved in trading the stock market. So as we get into these seven secrets, the way that this is going to work is I'm going to basically give you seven videos. And each of these videos is going to unlock a different piece of some of the secrets that I've discovered over the years trading. Now, by the end of it, you're not necessarily going to be a master trader, but you certainly are going to have a better idea of what it's going to take to be an effective trader and a successful trader in the stock market.
(01:06):
Okay? So as we get going, here's what you can expect over the next seven videos that you'll be receiving. Uh, first of all, you're going to get some secrets for better trade analysis so that you can pick some better trades and you can be in a more effective trader. You're also going to get some secrets for controlling your emotions. And ultimately, we're going to share some stuff about how you can lower your risk. Now, just think about that. If you've been involved in the stock market at all, if you can pick better trades, you can do better trading analysis. If you can keep your emotions under control, and if you can lower your risks, what more do you need to be a successful trader? And if you have any involvement in the market, then you may realize that that alone is going to take you to an entirely new level.
(01:47):
All right. So before we get too far, why don't I introduce myself? I realize many of you may not know who I am. So let me give you a quick word about myself. As I've already mentioned, my name is Jeremy Whaley. I started trading the stock market in 1999. And now, while I've been involved since 1999, I didn't fully transition into a professional relationship with the market until about 2008. I actually started off as a professional musician. That's what I went to college for. That's what my training was in. And I actually worked in Nashville, Tennessee as a full-time studio musician for almost 10 years. But in the process of that, I discovered that it really wasn't my passion as much as I thought it was going to be. And I really had this secret passion for trading the stock market. And so around 2008, I made the full-time switch over to stock trading.
(02:31):
And that led ultimately to not just trading the market for my own personal gain, but also to helping other people learn how to be involved in trade the market as well. And over the last decade, plus that I've been teaching people how to trade. I've had the opportunity to share with over a hundred thousand people at various capacities of how to be involved in how to trade the stock market. Okay. So there's a little bit about myself now, as you look at me and you see me as a successful trader today, and, you know, I've certainly my successes that I can brag about. Uh, it might be easier to, uh, it might be easier, I should say to think that it's always been this way and it's always been a walk in the park, but it really hasn't. In fact, that's really where all of these lessons come from.
(03:11):
Everything that I'm sharing with you. These are lessons that are born on my out of my own personal experiences. Um, many of these lessons I've just learned the hard way over the years. Some of them have just been things that I've picked up over the years, but every bit of this, uh, wisdom of sharing with you, if I could just go back to a younger version of myself, these are things that I would love to share with a younger version of myself. Okay. So the first secret that I'd like to share with you and boy, if only I could go back to 1999 and right in the middle of all the tech bubble, if I could just share this first secret boy, how much pain could I have avoided? But here it is my very first secret that I want to share. And frankly, this is the one that really overrides everything.
(03:49):
And I always say this trading can be simple trading. It'd be simple. In fact, it can be very simple. In fact, it can be so simple that most people don't feel comfortable with it being cold. Wait that simple. And that's why they make it complicated. In fact, even the pros do this. Even the pros don't realize how simple trading really can be. Did you know that 90 days, 3% of fund managers actually underperformed their S and P 500 benchmark over a given five-year period of time, 93%. Now, if you think about that, that means that if you want to outperform the market, if you want to have a successful trading fund, let's not call it your own trading account, but we'll say some funds that are invested somebody else. You need a top 7% fund manager. Otherwise you'd be better off just to simply put your money into a simple index fund and leave it.
(04:44):
Because most fund managers, they cannot even match their S and P 500. Okay? Which marks now you might think that that number gets better over time. It actually gets worse. In fact, the real estate, by the way, I'm referencing a SPIVA study. This is a study that's been put out for several years, and I've been tracking this for many years while it might shift a little bit, you know, a half percent, 1% here or there. Uh, these numbers have been very consistent for about the last five or six years that I've been tracking this study. And here's the crazy thing. If you look at a one-year, uh, Delta on this, if you look at over one year, uh, most funds is somewhere between 70 and 75% of the funds cannot match their S and P benchmark. So over one year, 75%, Mr. Benchmark, over two years, it gets worse.
(05:28):
It's an 80 percentile and you go over five years. It's about 93% of funds cannot match their S and P benchmark. You think, well, okay, surely over 10 or 15 years, it gets better. No, the further you go, the worse it gets over 15 years. I think it's about 95, 96% of funds cannot match their S and P benchmarks. So what that tells you is even the professionals struggle to beat the market and to do a great job. Now, how can this be? I mean, these people that have their big degrees in accounting and their big degrees and, you know, quantum mathematics and whatever, or else it is that they like to study, certainly they've figured out how to pick a winning stock and how to beat the market. Right? Surely these people that were giving billions of dollars to, and they are managing people's funds all across the world, these are the right.
(06:17):
Well, actually, no, the reality is what we've found is most people, including the professionals make trading way more complicated than it needs to be. That's just the reason, even the professionals. And so you look at some professionals and they're giving you all their reasons for why they're buying a stock. You can give them, they can give you all their, a fundamental reasons, all their projections of what they think that the stock is going to do. They can give you all their projections, what management's going to do. And they go through all these stories on, well, why this is going to be the winner. And this is the big one. Sometimes they even go on CNBC or Fox business, or one of these, you know, Saturday morning shows and say, this is the stock. This is the tray you want to be in. And it turns out that they're actually not any more effective than some day traders sitting in there, underwear in their living room, in the middle of an Island, somewhere in the Caribbean.
(07:04):
You know, it turns out that everyday retail traders like yourself, like me, we have just as much of a level playing field today as the big boys, simply because of technology because of the information that's available to us. But most importantly, because of the mindset, because of the strategy that we can implement because of the way that we can approach the market, turns out that today in this marketplace, the little guy I can actually be just as effective as the so-called professional. Okay. So what's the secret. How do we keep it simple? Well, I have a step process and this is a process that I narrowed down many years ago. And this is the process that I go through with everybody. I do it with my own trades, but specifically with the people that I coach on a private one-on-one basis for all the people that I have taught over, yeah, this is the process.
(07:52):
This is the framework that I worked through for picking right winning stocks and ultimately being an effective trader. And the first step out of this three-step process that you need to do is you need to number one, learn how to analyze the trade. Now what's the big deal about analyzing a trade? Well, here's what happens when we analyze a trade effectively, we can pick the right direction. It's really simple. Stocks can only go three directions. They can go up and they go down. They go sideways. And if you can do good trade analysis, then you can and effectively analyze the trade. And if you can effectively analyze the trade, then you can determine which direction the trades go. And if you can pick the direction while everything else becomes really simple. So step number one is to analyze the trade and pick the direction of the stock.
(08:37):
Instead, number two, you might think, Oh, it's gotta be really complicated, right? Well, no, it's actually quite logical. Once we've analyzed the truth. Once we've picked a trade direction, now we have to apply inappropriate strategy. Now, how do we know the appropriate strategy? Well, that's quite simple folks, you know, stock market can full of advanced strategies, but it doesn't need to be your most basic strategy is simply buying a stock or selling the stock short. Or if you move over into options trading, we've got buying calls and buying puts, and we can get into selling options and we can get into spreads and straddles and strangles and iron Condors and butterflies and ratio spreads all sorts of cool stuff, right? So clearly it's complicated. No, no, no, no. In fact, you're going to learn during these seven secrets that really those strategies, they're kind of a distraction.
(09:25):
The reality is placing winning trades and making money in the market is as simple as figuring out what direction the trades going. And then just simply applying a strategy. If the, if the direction is going up, then we apply a bullish strategy that makes money at the trades going up. If the trade's going down, we apply a bearer strategy. That's making money. If the trade is going down, and if you do that well, we're home free, right? We figured out how to pick the direction of the trade. We figured out the right strategy. Now we can just kick back and relax, put our toes in the sand and we're home free. Right? Well, all most because there's one more part that is really, really critical. If you want to be an effective trader. And that part is simply learning to manage your risk learning, to manage your risk.
(10:08):
You know, trading is not gambling. Trading is not gambling and yet what a lot of people do. And one of the reasons people go broke in the stock market is they put all the money in. And so there's a lot we can learn from the world of gambling. What do they, what a gamblers do. They have very specific amounts that they will put into in any given trade, if you will, in the case of gambling, a hand of cards or, you know, whatever it is that they're playing, whatever game they're playing. And so they've learned over the years to manage their risks is I like to say, know when to hold them, know when to fold them, right? So you, you put a certain amount into, in our case a trade and you have a certain response or reward that you're expected to get for it, but you're not going to put everything into one trade.
(10:50):
And so, as we learn to manage our risks, learn when to get out of the trade, learn how much to actually allocate into a trade. This is the third piece to being an effective trader. So you can actually beat the market. Now, just imagine with me, if you had the ability to do these three things, if you had the ability to analyze the trade direction, so you could pick a winning stock, if you had the ability to apply an appropriate strategy. And if you had the ability to manage your risk, is there anything else that you really need to be an effective trader and to really make a lot of money in the market? And of course the answer is no, there's not the only other piece that could go on the screen here is you. The only other piece to this entire equation is you, the trader your own personal mindset and your own discipline and willingness to actually execute the trading plan that you put in front of you.
(11:39):
So here's what I promise you. If you'll simply do these three things, just simply do these three things. These simple things, trading never needs to be complicated. It really doesn't need to be complicated. And I've proven it over the years. I've proven it with my own trading account. I've proven it with my students that I've taught. And I've got some students that make it really complicated and guess what? They usually struggle to make a profit. And then I've got other students that just kind of let it go there. They make it easy. It let it be easy. And many of them are just blown away at how easy it can be to really make a profit in the stock market. All right. So over the remaining sessions, over the remaining videos that I'm going to be sharing with you, I'm going to go a little bit deeper into some of these secrets and I'm going to be revealing how simple it really can be.
(12:23):
But the first secret, the one that I want you to walk away from right now is this trading can be simple. So my challenge is, would you let it be simple? Would you let trading be simple so that instead of fighting the trades, instead of working so hard against them, you can just go with the flow and ultimately let the profits flow to you. That's the first secret, and I hope you've enjoyed it. And, uh, what you need to do now is get ready for secret number two, because that's where I'm going to see you next.