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There’s no greater feeling than the amount of people you help. It’s one thing for me to accumulate and acquire artists well, but it’s another thing when I’m able to take others on that journey and help them do the same thing. Help them change their financial lives.
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What’s up? Welcome to Financial Freestyle here on Yahoo Finance, and I’m your host, We’re all Smack. Now look guys, no matter where you are on your financial journey, you can never stop learning, and that’s why you’re at the right place cause I’m talking to some of the goats, some of the greatest in their own fields, and they’re gonna be helping you learn how to get to the bag. And look, today is no different cause I’m talking to my guy.One of the goats in the industry, the Chris Sa financial educator, Chris, my dog, how you living baby?
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Grossman, I thank you so much for having me, man. I’m humbled and honored to be here and bless the audience on the day.
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Well, listen, man, one, I have to always give people their flowers of people that inspire me. Chris, you came across my, uh, call it desk, so to speak, during COVID, where people were like, oh, do you follow Chris, do you follow Chris? And I, I started watching some of your stuff and man.That was, I don’t know, 5 years ago, 5 years later, you got close to a million followers on YouTube, bro. You are one of the, like I say, one of the premier people that not only, you know, walk the walk, but you talk the talk and you really are helping thousands of people, right? So, I know who you are, but to the audience, man, who would you say Chris Say is?
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Chris I obviously an investor. I help people invest and build wealth in the stock market, and specifically, I teach you how to trade by teaching technical analysis and proper risk management. And so to your point, Rossman, I’ve been able to cultivate one of the largest organic audiences on social media, YouTube specifically as my primary platform, just teaching the technicals of the stock market so thatThose that once thought this was a game that they wasn’t able to participate in, they could now see a pathway to how to invest, how to get involved in the stock market, how to start trying to build their financial future, and we do it in such a digestible but cool way at the same time.
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You know whatI love about it is because one,There’s a lot of misinformation out there, right? Uh, you got a ton of people trying to teach, and don’t necessarily know, right? Like I am trained in fundamental analysis. There’s no ifs ands or buts, right? Like, I worked on Wall Street, I was an analyst andBefore I could go to sales and trading and maybe do a year of research. So I was reading 10 K’s and 10Qs so I could tell you fundamentals like the back of my hand, right? But technical is a different game, right? And I love it because when you learn technical analysis, coupled with the little fundamentals.Yeah. Nobody can take that skill set from you. So like, what would you say the first step in helping a person, one, overcome their fears, but two, really grasping and understanding technical analysis.
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I tell my audience every day, the money is in the chart. And so when you look at a chart and you’re 100% right, they tell me, Coach, this overwhelms me, and I tell them all the time.In month one, it will be overwhelming, but by the time you start looking at it 30 days, 90 days in, things you don’t see, you will all of a sudden see pattern recognition, candle structure, and then more importantly, the technicals allow you to master your entries. A lot of times we’re either buying high and chasing or having the fear of missing out in the market.What technical does is it takes the gamification and the gambling aspect out of investing, and it helps you have measured marks in terms of where you should enter.Uh, you said this earlier, Ross off camera, sizing into your position, or we call it dollar cost averaging so that you’re not going all in at once. So then if there’s any drawback in the market, if there’s any type of pullback, you’re not panicking because you didn’t go in all in. You now have some dry powder left.OK, I’ll put a couple dollars in at this level. Now it’s at this level. I have some more money to deploy, and that overall helps the emotions remain in check. So then individual investors and retailers are able to see the true matriculation of their trades, of their investments, get that return on investment over time.
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I love it, right? So like, when I’m thinking about technical analysis, it’s literally like, or maybe yeah, when I’m thinking about reading a chart, right? It is, it’s almost like a dialogue between buyers and sellers, right? And you know, it’s another language. And so, what are some of your key data points or some of your key things that you look at when when it comes to setting up your chart?
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As a former athlete, I play football.And I remember both football and basketball, but I remember in football learning the playbook, the X’s and O’s. When I see the charts, when I see candle structure, for whatever reason, my mind processes that the same way I did reading a defense or reading the offense. And so I see the candle structure and I see the patterns which we call pattern recognition.And so we can see when there’s a swing high or swing low. We can see when there’s a break of support of key and critical support levels are breaking or blasting through resistance. And so all of those things help you make informed decisions. Some of my favorite indicators, Ross, is the 13 exponential moving average, the 48.exponential moving average and the 200 day moving average, coupled with the VWOP, the volume weighted average price. These indicators help you to kind of, people say cool things like the trend is your friend, but a lot of new investors don’t.Understand what that means. But the market likes to ride the 20 day, in my case, the 13 day moving average. And so depending on what direction it’s going, you have a clear understanding of where that trend is actually going. The trend could be your friend to the upside.But if you rock with me, the train can be your friend when it’s going down as well, which is how I teach my audience to make money in both directions. Learn how to properly hedge, learn how to properly get into your plays at the right levels.
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That’s why I respect what you do because obviously you’re given a real game, but it’s important to understand like.You get roughly 80+% of the people that will not do better than the S&P 500, right? So literally when I’m telling people like, look, be a long term investor, you know, your money is gonna just double every 7 years if you’re getting 10% returns from the S&P 500, but you got them people that really like, look, I’m cool with the 10%, that’s over here. Here’s the money that I’m really trying to build my alpha with and that’s on the trading side. So when it comes from a risk management standpoint.Go right to a person that’s listening to this who’s like, you know what, I’ve been just a long, I’ve just been a buy and hold investor. I’ve been scared to one, get into trading, but like when you talk about, you know, risk management, what percent of your portfolio is long term versus trading and with that trading, how are you sizing etc.
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As a long-term investor, I started investing 15+ years ago.Nike, I was an athlete and I always wore Nike. And Apple, I always keep an Apple Watch on. So that was my two stocks, for example. But back in the day, Apple used to always be 124 and it would always go to 192. They never let it bust through the 200s until just 2024, but it would just go back and forth. And over the years, I used to just sit back and be like, Man, well, I’ve seen this pattern for five straight years now.OK, I now know to get in buying my shares, investing at 124, and I got a nice runway every year on the breakout cycle to 192. Well, when I transitioned to trading, I remember 124 and like you did, Ross, with your Eli Lilly play, I bought a long dated leap at 124.Anticipating what I learned from investing that on the car option side, it will go to 192. It helped catapult my wealth. It helped grow my portfolio value much quicker than waiting on a stock appreciation when you have the hundredfoldness of the options. And so that was one thing. The risk management piece for me always comes down to using the stock loss.Understanding how to lose, understanding your loss limit each day in the market, whether you’re investing or trading. You want to know, OK, if I’m up 40%, 60% or 100%, the market on average is going to go up 8 to 10%. So if I have this outsized gain, at what point am I going to manage my risk, protect my capital by locking in some of these gains?What if I miss taking profits when it’s up and then the market have a sudden downturn and now all of a sudden the market is below the average cost in which I bought in at? Where am I going to either add to my position and orSet my loss and reposition myself and get back in it. And so that’s the kind of thing when we talk about risk man is using your stop loss, a trailing stop loss, knowing how much you’re willing to lose. You have to know yourself. You have to know if you’re a risk averse or not. You have to know your limit.Some people can’t stomach a $100 loss. Others with a higher tolerance can stomach up to a $1000 loss. It all depends on the individual. And so risk management really kind of tackles all of those things, making sure you’re protecting your capital at the end of the day.
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And look,I want the world to know like, bro.You came and spoke at my Macronomics wealth summit this past month, man, and the amount of people that walked up and was like, hey, coach, I got a gift for you. Coach, I’m so grateful for you, right? Like you legitimately have a one, a cult following, but more importantly, you’ve touched millions of people. So one, my hats off to you. What would you say is the best partof that?
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It’s one thing for me to accumulate and acquire all this wealth, but it’s another thing when I’m able to take others on that journey and help them do the same thing. Help them change their financial lives. Help them pay off debt, pay off their house. I have so many individual testimonies from people that have done.Some phenomenal things just through learning how to invest in the stock market, and then ultimately learning how to trade. And so when people can see it in real life and see people really running up to you in airports and different cities and countries you may be in telling you just simply thank you, and you changed my life. May you help my mom get out of debt, or you help my mom pay off her house, or after a divorce, may your videos help me bounce back. And so, man, that’s what it’s all about for me.
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Without a doubt, look, we’re gonna take a quick break, but when we come back, man, we’re gonna have more with Chris saying, he gonna teach you how to start trading, maybe even tomorrow.All right guys, welcome back to Financial Freestyle here on Yahoo Finance, and we’re talking to Chris Sa, financial educator. Now Chris, obviously you got a big following. Obviously these people follow you for a reason. So what would you say is your single best trade that you’ve made and how much did you make on it?
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Most recently, I got two for you, Ross. I had a Palanttier play and the ticker symbol on Palantirer is PLTR.On that particular play, I think I made $327,000 on Palantirer, and then I had one more recent than that, which was Netflix. And I knew that they were going to, this was prior to earnings, so this was a couple months ago, but I knew they were going to run up to $1000. They ended up going to $1200 but I was in it at $700.And I go pretty heavy in terms of my size. And so I had 150,000 on that particular recent play. So again, that’s another thing. I go heavy in my plays because the technicals give me confidence that I’m making a good decision. It’s a it’s a low risk, high reward because of the technical aspect.
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I love it, man. So now, right, we got to get some game because the average person sitting at home, but yet, right, we’re in a new world whereThat’s why I respect you because there was a time where there was a lot of misinformation, people coming in, Robin Hood came in making trading gamified, people blowing up their portfolio, right? The average person blows up their account over trading, right, or not knowing what they’re doing. So to a person that’s listening, let’s get in some game. If they’re coming in right now with $1000 fully trying to trade, what are the technicals they need and what is the research they need to do outside of just subscribing to Chris saying cause he should do that too.
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Absolutely. If you’re coming in with at least $1000 and you don’t even need that much, guys, I don’t want you to be deterred thinking, I don’t got $1000 and you can do this with even $250. Check this out. What you want to do, you need to first identify a stock in which you want to make money with. Number 2, you need to see how much volume and liquidity it has. That simply means how well that it moves in the market.During the first two hours of the day. OK. So on the East Coast market opens at 9:30. So from 9:30 to around noon, you need to make sure that it has some actual movement. Movement is how you make the money. No matter the direction, it needs to be, Ross said this to you guys earlier, you need to have some buyers and some sellers involved in that particular place. So for example,You can choose something like Tesla, Nvidia, and Palantirer because they have movement versus Coca-Cola and Pepsi may not move. So be very, very distinct on what you choose in terms of volume and momentum. From there, OK? You would need to pick an expiration date. That is a time period in which you think and believe that your particularThe asset that you choose can hit that price target within that window of time. So Ross has a play with Eli Lilly out to January 2027. I don’t care how long it take it to bubble up, he’s going to hit it out the park because the number one thing he did in his particular example, he gave his Sultan. That is your best.Friend in this game. Time is our greatest asset as investors. Time is also your greatest asset as a trader. So don’t come into the game gambling, trying to get rich quick. That is not what we do, OK? Don’t come into the game thinking without knowing what you’re doing and having an understanding that you’re going to just hop right in.And all of a sudden make a boatload of money. You need the time so that you can see the the fluctuation, how high a play went, where you could have got in at where a better entry may be, and more proing where you can add to your position at. If you do those three things, you can increase your win rate potential on every trade out, even if you’re new and starting with $1000.
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You know whatI loved? You said the first thing was you got to, you know, find your stock.Yeah, right, likeThere are people every day that wake up and they’re, you know, they’re trying to chase something, right? If you’re just new to Netflix, right, and I tell people like, look, you might be good at LA Fitness, but it’s a different game when you step on the court and you’re trying to play with LeBron James, right? Meaning the same traders from Fidelity, BlackRock, Pimco, you name it, right? Any top asset manager in the world, they’re trading all.Netflix, right? The same people that are trading, you know, Palanttier, they’re trading that every day, right? And so I say that to say I love that you say you got to start with your stocks. So, curious, do you have like uh how many stocks do you have on your watch list and do you use screeners? Kind of what’s what’s your, like your day to day looking like when it comes to finding a uh
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that’s you, you hit it out the Ross.Everything you said is how I trade. I don’t use stock screeners. Guys, stock screeners, although helpful, you get caught up in chasing the next hot stock versus focusing on one. And we call it a horse. Find your horse. And so for me, every Friday night at market close, I identify the stock at the end of the day so I could see the weekly movement in it.That I want to trade for the upcoming week. And so I will say, OK, boom, market just closed these 3 stocks that was on my watchlist. I keep 3 on my watchlist to answer that question. Out of the 3, this one has the best chart set up going into next week. So Friday night, Saturday, and Sunday, I’m going to study that one stock so that Monday morning I hit the ground running. Therefore, my focus ain’t all over the place.When people see I have this thing, Ross, I make 30,000 every day within two hours. Typically it’s 11 minutes, 7 minutes, 15 minutes. But it’s not that that’s so impressive. It’s, I’ve been studying it since the market closed on Friday, all day Saturday and Sunday. So Monday I done ran every scenario in my head. If I see a gap up in pre-market, I already know what I’m looking for.If I see it got down, now I’m just looking at, do I need to abandon a call option, which is the thought that we think is going to go up and potentially do a put. But whatever it is, I have a if this, then that scenario already in play. I have it all mapped out in my head or on paper. I keep all of these notes every single day to know this isOur plan of action. We don’t play, we don’t, we don’t we don’t we don’t, it’s not a game. We take it very, very serious to the point where we can render these results, not only for myself but for others, because they end up adopting that same style in which we lead with every day. I,
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I will be honest, right? I was a late bloomer to trading, right? I’m, I’ve been investing since 2008, right? I’ve I’ve been investing in great companies since 2008, right?Uh, 2012, Facebook, right? I was in, I was an investor, but the trading is a new realm, right, and you’re seeing that, you know, you get these new products, zero day exploration contracts, etc. So it’s a new world.But when done correctly, it could for sure amplify and build true alpha for your portfolio, and it’s something that I don’t take lightly, right? I love the ability to, you know, I I miss some nice little calls and you look up and you’re up 4 or 500% in 3 months and it’s likeYou don’t see that.
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That’s a 4 X on your money, and you’re so right, Ross. What got me into the trading, I’m like you, man. I was a long term investor and that’s what I am at my core. But after buying hold, after year 5, you’re looking like, man, I’m pretty stable. Let me dip my toe. Let me take a couple dollars and at least see what this trading thing is about.And once I did it, Ross, I have my investments on this side, that they’re they’re not touched. They’re sitting in vanguard, OK? And then I have my trading, a specific amount of money that I allocated for trading, so I can afford to lose it, um, but I’m trying to grow it. And you said this and you said it perfect. Trading helps supercharge your wealth.It helps you get a 400% on something that over here on the investment side might have only been 80% over the course of so much time. OK? And so that was the thing that did it for me. I had my investments solidified. I was just looking for something extra to do and fell in love quickly with the challenge that trading presented.
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And so with this knowledge, right, and more importantly, the fact that you kindaTalk about it on YouTube and actually build a following. One thing I always find is like, it’s one thing to have a big following, but not a lot of people know how to master that and more importantly, monetize that following, right? So with a million, you know, subscribers on YouTube and obviously other, you know, uh other mediums of having followers, like how have you found a way to truly monetizethat?
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Man, at first, I built a level of trust among people. I showed that I was consistent and reliable. Number 2, I got everyday people real results. And when you can turn the average person and get them to believe and let them see that it’s possible for themselves, whether they make $100 a day or $400 a day.Eventually they’re going to spread the word for you. But on top of spreading the word, even when they brought new people in, I still showed up with the same level of consistency, integrity every single day. The other thing, Ross, I’m not charging.And I’m not putting my information behind the paywall. So I’m, I’m giving Harvard level education for free every day on YouTube versus the individual that might have a course that costs $5000. No, you can get that on my free daily video. So then the community wanted something more intimate, so we started a Patreon.To just grab those that was hyper focused and serious. And today we have over 40,000 paid members inside of our Patreon paying anywhere from $10 to $100 every single month.
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Like I say, man, I, I’m always inspired and I love what you do. But man, I just want to thank you for coming on, Chris. Like I say, you, you inspire a lot of people, so what you do is amazing and more importantly, you’re sharing the sharing the wealth in more ways than one. But that’s it for this episode, ladies and gentlemen, make sure you like, subscribe, make sure you’re here next week. And as always, tune in. This is Yahoo Finance. It’s your boy Ross Smack on Financial Freestyle.
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This content was not intended to be financial advice and should not be used as a substitute for professional financial services.