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hello how's everybody doing today
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so this is the very final lesson video
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for where
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we are going to finish the most
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important fundamentals
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um part of this particular section
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before we actually move on to the charts
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and indicators
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so how's everybody doing today i hope
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you guys have had a fantastic day
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trading so far
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and most importantly i hope that you
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guys have had an amazing time
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during these lessons and most
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importantly i hope that you guys have
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taken
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a lot away from these so far so so far
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we have covered the introduction class
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which had the terminologies
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which you guys should be very
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comfortable with now speaking to me
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in this particular language in lesson
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number two
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we were talking about what separates
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superstar status
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from mediocre and that had a lot to do
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with talking about emotions
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risk management and trading like an
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actual casino right
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in lesson three we talked about dollar
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cost averaging
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and laddering your buys and that's the
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process of making sure
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that you don't actually purchase
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everything for one specific
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price point as the price drops and
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you're very confident that it's going to
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get very much so
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near the support level you want to
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ladder those buys
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very slowly and effectively this way it
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gives you
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some of the best possible average prices
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and you're not trapped in one specific
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section and then we talked about reading
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level two order books understanding bids
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and ask
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the level two order book is simply the
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order book
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the biz are the people that are buying
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and the ask
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are the people that are selling and we
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were talking about how
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momentum changes can swing very quickly
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based on what we're looking at in the
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level two order book
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and the level two order book gives us
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the best real gauge
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and real momentum time swing so now
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for welcome to lesson five guys this is
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an incredibly
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important class that we're going to talk
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about
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alright so let's get into lesson five
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which will be
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on the topic of the dangers of
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leveraging which i'm sure you guys have
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all seen on many exchanges before and
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we're also going to be talking about
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shorting and we're also going to talk
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about what going
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long means so you guys always hear of
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the definitions of going long
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and going short and i just want to
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clarify some of the definitions between
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them
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and it's a very important psychological
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factor to retain okay you guys have to
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know that
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there are bears and there are bowls okay
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there's so many exchanges guys and i
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need to tell you right now
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that it's very dangerous okay to
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leverage
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the last thing you want to do is
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leverage okay if especially
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if you are a newer trader remember i've
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been talking
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many times before about how we should
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focus on
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making good trades the last thing that
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we actually want to do
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is focus on making profit the profit
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will come
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really really naturally guys and i don't
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want to see you guys
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fall into you know this pattern
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and become a victim of getting something
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called liquidated
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getting liquidated is one of the
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scariest things that can happen
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i've been liquidated so many times
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before on poloniex in my very
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very very early career okay and there's
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something called
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margin call and a margin call comes up
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when you simply don't have enough money
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to pay back the exchange
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so what they end up doing is they close
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your position
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which we're all going to get into the
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math okay the math is
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really important behind it and you guys
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need to understand the math
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because you need to understand the risks
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associated
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with leveraging i really don't recommend
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leveraging once again guys
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and i don't recommend it to anybody
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whatsoever
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no matter what circumstance you're in i
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do not recommend
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leveraging at all okay the only reason
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why i leverage
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on bitfenix is because one i'm a very
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experienced trader
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and two leveraging to me is honestly as
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normal as it is playing in the normal
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stock market because the math is
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all done in my head like that and i
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don't leverage
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because i need to borrow money right
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leveraging basically refers to let's say
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you have a thousand dollars okay and
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we're going to go over the math in high
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high detail trust me this is just to
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give you guys a
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really quick breakdown so let's say you
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had a thousand dollars to play
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on some exchanges like for example
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bitfinex
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or even on poloniex they allow you to
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leverage
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3.3 times so if you actually had a
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thousand dollars only to play
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they will actually allow you to play 3.3
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times
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whatever you have say of a thousand
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dollars
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so a thousand of 3.3 is 3
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300 now doesn't that seem
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tempting right doesn't it seem really
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tempting
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to be able to play with way more money
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than you
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actually have yes definitely
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it does who does it benefit the most
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well
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it actually benefits the exchange the
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most because
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you're paying more fees all right
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keep in mind you're paying more fees and
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there's literally no
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risk to the exchange at all
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and where does the money come from we
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also have to talk about all these
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factors as well
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so let's get into leveraging and talk a
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lot
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about what it actually refers to okay
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now i'm just gonna find like a blank
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screen here so i can write on here for
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you guys
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this way i like to write on this screen
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it makes a lot more sense to write on
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this particular screen
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than to maybe go somewhere else if you
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know where what i mean right okay let's
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find ourselves a really nice blank
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screen here
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so let's say that we're talking about
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leveraging all right let's get into this
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in very high detail
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so please pay attention this is one of
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the most important
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things to remember and the most
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important thing to take away from this
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particular video is do not leverage
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guys if you don't need to leverage don't
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do it the only reason i do it on
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bitfenix is because i
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short the market which is something
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we're going to go over
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in very very high detail here okay
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what the definition of shorting what the
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definition of going
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long actually means as well and all the
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risks associated with it
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and the reason why i personally leverage
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is because it's as
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plain to me and as normal to me as
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playing in the normal
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exchange market right so whether i'm
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i could be playing for example 10
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dollars of my own money
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or i could be playing three thousand
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dollars which is multiplied by three
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point three
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because the math is done in my head
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instantaneously and i'm super familiar
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with all the risks associated with it
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the reason why i do it the main number
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one reason is only because of this guys
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is because it actually shows my position
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on bitfenix that's right it shows my
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position
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my profit and my losses on bitfenix
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whereas if you play in your normal
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exchange account
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you actually don't have any type of
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realization
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or profit or loss realization whatsoever
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so let's get into this in really high
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detail guys i'm super excited to tell
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you about it
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but i need to make sure that i maintain
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a very serious tone
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because i don't want you guys to get
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caught up in thinking hmm
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i can actually play with a lot more
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money because
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hey i can actually leverage there's some
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exchanges like bitmex right
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b i t m e x that lets you leverage 100
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times okay so if you only had a thousand
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dollars
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you can actually play 100
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dollars instead of your one thousand
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dollars right
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that's multiplied by a hundred but what
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are the risks
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the risks are incredibly serious and you
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guys need to make sure that you're
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paying attention in this video
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and you need to make sure that you
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understand all of the risks
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i show associated with playing in a
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leveraged
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market and especially if you're going to
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short as well okay
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so let's say you are going long first of
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all
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all right let's see let's excuse me here
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for example
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actually you know what let me pull up my
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bitfenix first okay
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let me pull up my bitfenix here and let
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me go to
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this page that you guys might not
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actually even realize
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exists if you go to pretty much
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almost any exchange to be honest they
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anywhere that allows you to leverage
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they will actually have something here
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called funding
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okay now i don't have anything
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personally
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up in the funding myself right now
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usually i do but i disabled it for the
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purpose of this video okay
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so what is the funding page
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okay let me explain it to you guys in
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high detail
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so what the funding is is excuse me i
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have to cough very quickly i apologize
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sorry about that so what is the funding
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and what is it
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used for okay so what the funding is
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used for
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is let's say you had a lot of capital
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right
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you you had a very big balance a big
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bank roll
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what you would want to do is you would
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want to actually
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put it into the funding now what do you
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do with the funding
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it basically sits there think of it as
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compound
290
00:09:57,440 --> 00:10:01,360
interest every single day it's actually
291
00:10:00,240 --> 00:10:04,720
going to gain
292
00:10:01,360 --> 00:10:07,440
a fixed percentage every single day
293
00:10:04,720 --> 00:10:09,040
so if you were to actually fund this so
294
00:10:07,440 --> 00:10:09,680
for example if you go to the funding
295
00:10:09,040 --> 00:10:11,839
here
296
00:10:09,680 --> 00:10:12,959
it actually gives you the percentages
297
00:10:11,839 --> 00:10:15,279
right
298
00:10:12,959 --> 00:10:16,240
it gives you the percentages so what we
299
00:10:15,279 --> 00:10:18,800
see right now
300
00:10:16,240 --> 00:10:20,000
is the british pound right it's you're
301
00:10:18,800 --> 00:10:23,279
getting actually a really
302
00:10:20,000 --> 00:10:24,800
huge huge boost right now and you're
303
00:10:23,279 --> 00:10:27,040
gonna gain if you put in
304
00:10:24,800 --> 00:10:27,839
for example ten thousand dollars you're
305
00:10:27,040 --> 00:10:31,760
going to gain
306
00:10:27,839 --> 00:10:34,880
at a compound interest rate of
307
00:10:31,760 --> 00:10:36,560
seven percent a day right so you know
308
00:10:34,880 --> 00:10:39,200
that's how much you would gain
309
00:10:36,560 --> 00:10:40,160
so the us dollar right now you would
310
00:10:39,200 --> 00:10:43,279
actually gain
311
00:10:40,160 --> 00:10:44,079
point zero nine percent per day if you
312
00:10:43,279 --> 00:10:46,800
were to add
313
00:10:44,079 --> 00:10:48,079
your money to the funding and the reason
314
00:10:46,800 --> 00:10:49,839
why
315
00:10:48,079 --> 00:10:51,360
they want you to do this right is
316
00:10:49,839 --> 00:10:54,560
because well if you
317
00:10:51,360 --> 00:10:57,440
play in a margin account right
318
00:10:54,560 --> 00:11:00,160
a margin account refers to an account
319
00:10:57,440 --> 00:11:01,040
that actually allows you to leverage so
320
00:11:00,160 --> 00:11:03,440
leveraging
321
00:11:01,040 --> 00:11:04,160
lets you play much more than you can
322
00:11:03,440 --> 00:11:06,480
actually
323
00:11:04,160 --> 00:11:08,079
then you actually have right and now if
324
00:11:06,480 --> 00:11:10,160
you play in a margin account
325
00:11:08,079 --> 00:11:12,240
the exchange themselves they actually
326
00:11:10,160 --> 00:11:15,279
charge you a fee per day
327
00:11:12,240 --> 00:11:15,760
right they charge you a fee per day to
328
00:11:15,279 --> 00:11:18,240
actually
329
00:11:15,760 --> 00:11:19,360
borrow money from that margin account
330
00:11:18,240 --> 00:11:22,480
well where does this
331
00:11:19,360 --> 00:11:23,360
extra money come from hmm think about it
332
00:11:22,480 --> 00:11:26,320
guys
333
00:11:23,360 --> 00:11:27,519
if there's people that's contributing to
334
00:11:26,320 --> 00:11:29,839
the funding
335
00:11:27,519 --> 00:11:30,560
right if they're contributing to the
336
00:11:29,839 --> 00:11:32,560
funding
337
00:11:30,560 --> 00:11:33,760
then the people who are playing from the
338
00:11:32,560 --> 00:11:36,399
margin account
339
00:11:33,760 --> 00:11:37,600
are actually borrowing money from the
340
00:11:36,399 --> 00:11:40,240
funders
341
00:11:37,600 --> 00:11:40,880
does that make sense so the exchange is
342
00:11:40,240 --> 00:11:43,360
actually not
343
00:11:40,880 --> 00:11:45,120
borrowing you money you're borrowing it
344
00:11:43,360 --> 00:11:47,200
from the people that are contributing
345
00:11:45,120 --> 00:11:49,279
to the funder right to the funding
346
00:11:47,200 --> 00:11:51,040
account so let's say i'm
347
00:11:49,279 --> 00:11:53,120
contributing money to the funding
348
00:11:51,040 --> 00:11:55,519
account and i have say
349
00:11:53,120 --> 00:11:57,120
i don't know a hundred thousand dollars
350
00:11:55,519 --> 00:11:59,279
in the funding account right
351
00:11:57,120 --> 00:12:00,480
i'm actually gaining for example if it's
352
00:11:59,279 --> 00:12:03,040
usd
353
00:12:00,480 --> 00:12:03,839
i would be gaining point zero nine
354
00:12:03,040 --> 00:12:06,160
percent
355
00:12:03,839 --> 00:12:07,440
a day so if you guys actually do the
356
00:12:06,160 --> 00:12:10,079
math right here right
357
00:12:07,440 --> 00:12:11,279
if i have a hundred thousand dollars i'd
358
00:12:10,079 --> 00:12:14,720
be gaining point
359
00:12:11,279 --> 00:12:15,120
um zero zero zero nine i'd be gaining
360
00:12:14,720 --> 00:12:18,320
actually
361
00:12:15,120 --> 00:12:20,079
ninety dollars a day guys
362
00:12:18,320 --> 00:12:21,680
it's actually pretty decent right that's
363
00:12:20,079 --> 00:12:24,480
right i would be gaining
364
00:12:21,680 --> 00:12:25,279
ninety dollars a day if i were to add
365
00:12:24,480 --> 00:12:28,320
100
366
00:12:25,279 --> 00:12:29,360
000 to the funding account i could
367
00:12:28,320 --> 00:12:31,760
literally
368
00:12:29,360 --> 00:12:32,480
live off of this interest for the rest
369
00:12:31,760 --> 00:12:34,320
of my life
370
00:12:32,480 --> 00:12:36,320
okay when you think of it like that
371
00:12:34,320 --> 00:12:39,440
because times 365
372
00:12:36,320 --> 00:12:41,680
a year you'd be making three hundred
373
00:12:39,440 --> 00:12:43,920
thirty two thousand dollars a year right
374
00:12:41,680 --> 00:12:44,800
so you're getting paid i'm getting paid
375
00:12:43,920 --> 00:12:46,880
actually we'll say
376
00:12:44,800 --> 00:12:48,160
if i'm putting 100k into the funding
377
00:12:46,880 --> 00:12:51,279
account right it's gaining
378
00:12:48,160 --> 00:12:54,079
interest every day and now what does the
379
00:12:51,279 --> 00:12:56,240
what does the exchange use my money for
380
00:12:54,079 --> 00:12:59,440
well the exchange uses my money
381
00:12:56,240 --> 00:13:01,680
if you decide to leverage
382
00:12:59,440 --> 00:13:03,279
okay and leveraging can come in many
383
00:13:01,680 --> 00:13:05,839
forms it can come in
384
00:13:03,279 --> 00:13:06,480
shorting and it can also come in going
385
00:13:05,839 --> 00:13:09,760
long
386
00:13:06,480 --> 00:13:12,480
but regardless it goes towards a margin
387
00:13:09,760 --> 00:13:14,000
account okay it goes towards a margin
388
00:13:12,480 --> 00:13:16,160
account that you're playing in
389
00:13:14,000 --> 00:13:17,680
there are many different wallets there's
390
00:13:16,160 --> 00:13:19,600
for example
391
00:13:17,680 --> 00:13:21,440
a normal account that you would normally
392
00:13:19,600 --> 00:13:22,240
play in and then there's a margin
393
00:13:21,440 --> 00:13:24,160
account
394
00:13:22,240 --> 00:13:27,360
and that's the account that allows you
395
00:13:24,160 --> 00:13:29,680
to leverage which has a lot of risk
396
00:13:27,360 --> 00:13:30,880
guys now i know it's very tempting once
397
00:13:29,680 --> 00:13:32,880
again to want to
398
00:13:30,880 --> 00:13:34,560
play with more money than you actually
399
00:13:32,880 --> 00:13:37,440
have but i assure you
400
00:13:34,560 --> 00:13:39,040
100 guys and look at me when i say this
401
00:13:37,440 --> 00:13:43,040
i assure you with 100
402
00:13:39,040 --> 00:13:45,760
that you will get liquidated okay
403
00:13:43,040 --> 00:13:46,720
getting liquidated we're gonna talk all
404
00:13:45,760 --> 00:13:49,360
about that okay
405
00:13:46,720 --> 00:13:50,800
trust me okay so once again i contribute
406
00:13:49,360 --> 00:13:53,920
to the funding account
407
00:13:50,800 --> 00:13:55,519
right and if you decide to short or play
408
00:13:53,920 --> 00:13:57,680
in your margin account
409
00:13:55,519 --> 00:13:58,720
which basically means to leverage to
410
00:13:57,680 --> 00:14:01,040
play with more money
411
00:13:58,720 --> 00:14:02,160
than you actually have you are actually
412
00:14:01,040 --> 00:14:05,279
borrowing the money
413
00:14:02,160 --> 00:14:06,639
from someone like me who is adding to
414
00:14:05,279 --> 00:14:09,120
the funding account
415
00:14:06,639 --> 00:14:11,760
so now let's talk about a lot of these
416
00:14:09,120 --> 00:14:14,000
definitions and where we actually stand
417
00:14:11,760 --> 00:14:16,160
and what they actually mean okay it's
418
00:14:14,000 --> 00:14:16,959
really important to get a very good
419
00:14:16,160 --> 00:14:20,240
grasp
420
00:14:16,959 --> 00:14:22,959
of how the margin accounts are actually
421
00:14:20,240 --> 00:14:23,519
used all right so let's get into this
422
00:14:22,959 --> 00:14:26,079
guys
423
00:14:23,519 --> 00:14:26,800
so you guys all know the definition of
424
00:14:26,079 --> 00:14:28,880
going long
425
00:14:26,800 --> 00:14:30,000
right you know the definition of going
426
00:14:28,880 --> 00:14:31,680
long which i'll write on here
427
00:14:30,000 --> 00:14:33,760
for you so let's just follow along here
428
00:14:31,680 --> 00:14:34,720
as well this way we're all on the same
429
00:14:33,760 --> 00:14:38,480
page okay
430
00:14:34,720 --> 00:14:41,440
so if you're going long for example okay
431
00:14:38,480 --> 00:14:42,639
if you're going along for example right
432
00:14:41,440 --> 00:14:46,320
it means
433
00:14:42,639 --> 00:14:49,760
it basically means to purchase low
434
00:14:46,320 --> 00:14:53,519
and hope to sell high and purchase low
435
00:14:49,760 --> 00:14:55,600
with expectations to sell high
436
00:14:53,519 --> 00:14:56,560
that's basically the simple definition
437
00:14:55,600 --> 00:14:58,800
of going long
438
00:14:56,560 --> 00:15:00,720
right you purchase something cheap and
439
00:14:58,800 --> 00:15:02,800
you expect it to sell it higher
440
00:15:00,720 --> 00:15:04,639
so giving you guys a very basic
441
00:15:02,800 --> 00:15:05,279
definition which i'm sure you all know
442
00:15:04,639 --> 00:15:08,880
already
443
00:15:05,279 --> 00:15:11,519
if you purchase say 100 coins at 10
444
00:15:08,880 --> 00:15:13,279
right that would be equal to thousand
445
00:15:11,519 --> 00:15:17,440
dollars total right there
446
00:15:13,279 --> 00:15:21,120
now if you sell your 100 coins at 11
447
00:15:17,440 --> 00:15:24,399
right that's going to equal to 11 100
448
00:15:21,120 --> 00:15:25,519
so what's your total profit your total
449
00:15:24,399 --> 00:15:28,880
profit would be
450
00:15:25,519 --> 00:15:32,000
eleven hundred minus
451
00:15:28,880 --> 00:15:34,320
right one thousand dollars that makes
452
00:15:32,000 --> 00:15:36,240
a lot of sense which is equal to one
453
00:15:34,320 --> 00:15:38,880
hundred dollars right
454
00:15:36,240 --> 00:15:40,000
so this is a super super simple
455
00:15:38,880 --> 00:15:43,199
definition
456
00:15:40,000 --> 00:15:44,959
of actually going long now let's talk
457
00:15:43,199 --> 00:15:46,160
about it from the perspective of a
458
00:15:44,959 --> 00:15:49,199
leveraged
459
00:15:46,160 --> 00:15:49,519
long example okay now this is going to
460
00:15:49,199 --> 00:15:51,759
be
461
00:15:49,519 --> 00:15:53,839
a little bit more complicated so make
462
00:15:51,759 --> 00:15:55,680
sure that you guys are 100
463
00:15:53,839 --> 00:15:57,839
paying attention to this because i
464
00:15:55,680 --> 00:16:00,880
assure you it's going to be mind blowing
465
00:15:57,839 --> 00:16:03,040
by the time we're done okay
466
00:16:00,880 --> 00:16:04,880
so let's get into this example where i'm
467
00:16:03,040 --> 00:16:08,639
going to use a leveraged
468
00:16:04,880 --> 00:16:12,399
long example so if you purchased okay
469
00:16:08,639 --> 00:16:15,519
100 coins at 10
470
00:16:12,399 --> 00:16:18,240
that equals to 1 000 1 000
471
00:16:15,519 --> 00:16:21,040
right just just as an example right here
472
00:16:18,240 --> 00:16:24,560
but if it's leverage right
473
00:16:21,040 --> 00:16:26,079
but if it's leveraged leverage three
474
00:16:24,560 --> 00:16:28,959
point three x
475
00:16:26,079 --> 00:16:30,480
so that's one thousand dollars okay now
476
00:16:28,959 --> 00:16:33,680
let's say you only had
477
00:16:30,480 --> 00:16:35,519
three hundred dollars right you only had
478
00:16:33,680 --> 00:16:38,720
three hundred dollars
479
00:16:35,519 --> 00:16:42,079
you only have 300
480
00:16:38,720 --> 00:16:45,839
of your own money but
481
00:16:42,079 --> 00:16:47,440
but leveraging lets you play 3.3 times
482
00:16:45,839 --> 00:16:49,440
more right so make sure that's
483
00:16:47,440 --> 00:16:53,279
understood so but if it's
484
00:16:49,440 --> 00:16:56,560
leverage 3.3 x of the 1 000
485
00:16:53,279 --> 00:17:00,079
right so that really means
486
00:16:56,560 --> 00:17:05,120
so that really means 1 000
487
00:17:00,079 --> 00:17:06,880
divided by 3.3 x is really your money
488
00:17:05,120 --> 00:17:08,400
right that makes sense it's really your
489
00:17:06,880 --> 00:17:11,280
money just to make sure you guys
490
00:17:08,400 --> 00:17:15,679
understand that so far
491
00:17:11,280 --> 00:17:18,720
so 300 is yours right so you have 300
492
00:17:15,679 --> 00:17:21,919
but you're paying thousand dollars
493
00:17:18,720 --> 00:17:22,559
and it's actually leveraged 3.3 times
494
00:17:21,919 --> 00:17:25,199
right
495
00:17:22,559 --> 00:17:26,880
so make sure that's really understood so
496
00:17:25,199 --> 00:17:31,520
now that this means
497
00:17:26,880 --> 00:17:33,760
this means you're actually borrowing 700
498
00:17:31,520 --> 00:17:35,600
from the from the funders right from the
499
00:17:33,760 --> 00:17:38,160
funders so say someone like me
500
00:17:35,600 --> 00:17:39,360
in the margin account right so because
501
00:17:38,160 --> 00:17:43,600
you're borrowing
502
00:17:39,360 --> 00:17:47,039
700 let's say now if you sold
503
00:17:43,600 --> 00:17:50,480
okay if you sold 100
504
00:17:47,039 --> 00:17:52,960
coins at 11 each now
505
00:17:50,480 --> 00:17:54,160
just like the above where we sold it for
506
00:17:52,960 --> 00:17:59,360
right at 11
507
00:17:54,160 --> 00:18:01,919
the 100 coins here right that's equal to
508
00:17:59,360 --> 00:18:03,440
hundred dollars profit right i'm sure we
509
00:18:01,919 --> 00:18:06,320
can all agree on that
510
00:18:03,440 --> 00:18:06,640
so you guys have three hundred dollars
511
00:18:06,320 --> 00:18:09,840
of
512
00:18:06,640 --> 00:18:12,400
your own money okay and now
513
00:18:09,840 --> 00:18:13,120
you have borrowed seven hundred dollars
514
00:18:12,400 --> 00:18:15,360
because
515
00:18:13,120 --> 00:18:16,320
your three hundred dollars is now
516
00:18:15,360 --> 00:18:19,600
leveraged
517
00:18:16,320 --> 00:18:23,280
three point three times so if you sold
518
00:18:19,600 --> 00:18:27,039
100 coins at 11 each now
519
00:18:23,280 --> 00:18:29,760
that would actually be up 1 100
520
00:18:27,039 --> 00:18:30,960
total that you now have right so that's
521
00:18:29,760 --> 00:18:34,320
the total that you have
522
00:18:30,960 --> 00:18:37,679
after sale so after you sold it
523
00:18:34,320 --> 00:18:41,679
you have eleven hundred dollars right
524
00:18:37,679 --> 00:18:46,480
but you did borrow seven hundred dollars
525
00:18:41,679 --> 00:18:46,480
right that wasn't your own money
526
00:18:46,720 --> 00:18:49,760
that was not your own money as well so
527
00:18:49,440 --> 00:18:52,799
you
528
00:18:49,760 --> 00:18:55,679
have to actually still pay
529
00:18:52,799 --> 00:18:56,960
back seven hundred dollars to the lender
530
00:18:55,679 --> 00:18:59,520
right
531
00:18:56,960 --> 00:19:01,120
does that make sense so far so now you
532
00:18:59,520 --> 00:19:02,960
have eleven hundred dollars
533
00:19:01,120 --> 00:19:04,240
minus seven hundred dollars is really
534
00:19:02,960 --> 00:19:05,919
equal to
535
00:19:04,240 --> 00:19:08,320
four hundred dollars that you actually
536
00:19:05,919 --> 00:19:11,200
have left when you think about that
537
00:19:08,320 --> 00:19:13,200
so what is your actual profit right now
538
00:19:11,200 --> 00:19:16,720
that you have
539
00:19:13,200 --> 00:19:19,919
400 left and you started
540
00:19:16,720 --> 00:19:24,559
with 300 well the profit
541
00:19:19,919 --> 00:19:28,400
is simple is 300 or sorry 400 minus 300
542
00:19:24,559 --> 00:19:32,080
which is equal to 100 total profit right
543
00:19:28,400 --> 00:19:34,720
well 400 um that's actually 33
544
00:19:32,080 --> 00:19:38,640
if you think about it right because well
545
00:19:34,720 --> 00:19:40,799
you actually profited 1.33 times right
546
00:19:38,640 --> 00:19:42,320
so i hope that makes a lot of sense
547
00:19:40,799 --> 00:19:45,520
because you're leveraging
548
00:19:42,320 --> 00:19:47,600
great um excuse me so
549
00:19:45,520 --> 00:19:48,559
if you if you think of the math right
550
00:19:47,600 --> 00:19:52,799
the dollar
551
00:19:48,559 --> 00:19:55,360
after selling 100 coins right at 11
552
00:19:52,799 --> 00:19:56,559
each is equal to eleven hundred dollars
553
00:19:55,360 --> 00:20:00,080
if the profit was
554
00:19:56,559 --> 00:20:01,760
one hundred dollars and the investment
555
00:20:00,080 --> 00:20:03,440
was actually we're going to write this
556
00:20:01,760 --> 00:20:06,640
down to make sure it's understood
557
00:20:03,440 --> 00:20:09,440
if the profit was one hundred dollars
558
00:20:06,640 --> 00:20:10,799
and the original investment we call that
559
00:20:09,440 --> 00:20:14,080
the principal okay
560
00:20:10,799 --> 00:20:15,360
and the principal was one thousand
561
00:20:14,080 --> 00:20:17,520
dollars
562
00:20:15,360 --> 00:20:19,520
that's equal to a ten percent gain right
563
00:20:17,520 --> 00:20:21,600
guys ten percent gain
564
00:20:19,520 --> 00:20:22,799
of what you actually played right makes
565
00:20:21,600 --> 00:20:26,880
total sense
566
00:20:22,799 --> 00:20:31,480
but guys right but if you take your 100
567
00:20:26,880 --> 00:20:35,760
of 300 right that's actually uh
568
00:20:31,480 --> 00:20:37,200
33 excuse me 33 percent gain
569
00:20:35,760 --> 00:20:39,600
because if you actually take your
570
00:20:37,200 --> 00:20:44,159
original gain if you take your
571
00:20:39,600 --> 00:20:47,440
original gain of 10 and multiply
572
00:20:44,159 --> 00:20:50,960
that by 3.3
573
00:20:47,440 --> 00:20:54,080
times that's 33 as well right
574
00:20:50,960 --> 00:20:57,200
so make sure that you guys really
575
00:20:54,080 --> 00:20:57,919
really understand this concept yes the
576
00:20:57,200 --> 00:21:01,919
gains
577
00:20:57,919 --> 00:21:02,559
can be incredibly astronomical all right
578
00:21:01,919 --> 00:21:05,120
it could be
579
00:21:02,559 --> 00:21:06,960
really amazing but now we gotta talk
580
00:21:05,120 --> 00:21:09,520
about the scenario where
581
00:21:06,960 --> 00:21:12,000
let's say it actually the market goes
582
00:21:09,520 --> 00:21:14,159
against you right
583
00:21:12,000 --> 00:21:15,039
if it goes against you how much money
584
00:21:14,159 --> 00:21:17,760
can you
585
00:21:15,039 --> 00:21:20,960
actually lose that's a really big
586
00:21:17,760 --> 00:21:23,520
question so let's get into that too
587
00:21:20,960 --> 00:21:24,320
okay let's get back into it's actually a
588
00:21:23,520 --> 00:21:26,960
new day
589
00:21:24,320 --> 00:21:28,000
so um i wrapped up the video yesterday
590
00:21:26,960 --> 00:21:29,440
that's why i'm wearing something
591
00:21:28,000 --> 00:21:30,080
completely different so you guys might
592
00:21:29,440 --> 00:21:31,520
be wondering
593
00:21:30,080 --> 00:21:34,159
why is he actually wearing something
594
00:21:31,520 --> 00:21:37,280
different right now so we left off
595
00:21:34,159 --> 00:21:39,679
with um basically learning how to long
596
00:21:37,280 --> 00:21:40,559
and leverage right but we have to
597
00:21:39,679 --> 00:21:43,280
understand
598
00:21:40,559 --> 00:21:44,960
the risks associated with it right we
599
00:21:43,280 --> 00:21:48,159
were talking earlier about
600
00:21:44,960 --> 00:21:50,080
how you can leverage and borrow money
601
00:21:48,159 --> 00:21:51,440
so now i want to give you guys another
602
00:21:50,080 --> 00:21:53,840
example okay
603
00:21:51,440 --> 00:21:54,880
let's go over another example to talk
604
00:21:53,840 --> 00:21:57,120
about the risks
605
00:21:54,880 --> 00:21:59,039
associated so you have three hundred
606
00:21:57,120 --> 00:22:00,720
dollars you have three hundred dollars
607
00:21:59,039 --> 00:22:02,640
and want to leverage
608
00:22:00,720 --> 00:22:04,880
three point three times right which is
609
00:22:02,640 --> 00:22:07,679
equal to one thousand dollars
610
00:22:04,880 --> 00:22:10,000
total playing so total trading total
611
00:22:07,679 --> 00:22:12,080
trading money put it that way okay
612
00:22:10,000 --> 00:22:13,120
so you have to retain or you have to
613
00:22:12,080 --> 00:22:16,240
maintain
614
00:22:13,120 --> 00:22:17,280
something called 15 equity on most
615
00:22:16,240 --> 00:22:20,640
exchanges
616
00:22:17,280 --> 00:22:23,760
15 equity this needs to be very clear
617
00:22:20,640 --> 00:22:27,039
so 15 of 1 000
618
00:22:23,760 --> 00:22:30,720
is equal to 150 right
619
00:22:27,039 --> 00:22:33,840
what this means okay if you were to buy
620
00:22:30,720 --> 00:22:36,640
if you purchased 100 coins
621
00:22:33,840 --> 00:22:37,919
at 10 which is equal to a thousand
622
00:22:36,640 --> 00:22:41,200
dollars total
623
00:22:37,919 --> 00:22:44,240
you can only lose
624
00:22:41,200 --> 00:22:47,919
fifteen percent of that
625
00:22:44,240 --> 00:22:51,280
one thousand dollars so it cannot
626
00:22:47,919 --> 00:22:54,559
cannot go below below
627
00:22:51,280 --> 00:22:56,400
so if each coin was one was ten dollars
628
00:22:54,559 --> 00:22:59,039
right and you bought a hundred coins
629
00:22:56,400 --> 00:23:00,400
it means that so it cannot go below
630
00:22:59,039 --> 00:23:03,200
eight dollars
631
00:23:00,400 --> 00:23:04,400
and fifty cents per coin because if you
632
00:23:03,200 --> 00:23:08,640
actually take
633
00:23:04,400 --> 00:23:12,480
okay if you take 100 coins
634
00:23:08,640 --> 00:23:16,159
at 8 and 50 cents it's equal to 850
635
00:23:12,480 --> 00:23:19,440
right which is 15
636
00:23:16,159 --> 00:23:21,679
down now what happens okay if
637
00:23:19,440 --> 00:23:22,799
if it actually goes down to date dollars
638
00:23:21,679 --> 00:23:24,559
and fifty cents
639
00:23:22,799 --> 00:23:26,559
that would be something called your
640
00:23:24,559 --> 00:23:29,840
liquidation price okay
641
00:23:26,559 --> 00:23:33,440
a liquidation price is the price
642
00:23:29,840 --> 00:23:36,960
that the exchange will automatically
643
00:23:33,440 --> 00:23:38,960
close your position right
644
00:23:36,960 --> 00:23:40,480
so if it automatically closes your
645
00:23:38,960 --> 00:23:43,120
position the
646
00:23:40,480 --> 00:23:43,919
the really horrible thing about margin
647
00:23:43,120 --> 00:23:46,400
trading
648
00:23:43,919 --> 00:23:47,520
is you're not always going to be left
649
00:23:46,400 --> 00:23:50,559
with 15
650
00:23:47,520 --> 00:23:51,440
guys in fact a lot of the times you are
651
00:23:50,559 --> 00:23:55,200
left with
652
00:23:51,440 --> 00:23:55,840
so much less than that and the reason
653
00:23:55,200 --> 00:23:57,919
why
654
00:23:55,840 --> 00:23:59,279
you're actually left with a lot less
655
00:23:57,919 --> 00:24:01,360
than that is because
656
00:23:59,279 --> 00:24:03,360
you're catching the bottom okay you're
657
00:24:01,360 --> 00:24:06,240
trying to catch a cell
658
00:24:03,360 --> 00:24:08,080
so let's say the price actually ends up
659
00:24:06,240 --> 00:24:10,559
going down from ten dollars
660
00:24:08,080 --> 00:24:11,360
now it gets to eight fifty now a lot of
661
00:24:10,559 --> 00:24:14,480
people
662
00:24:11,360 --> 00:24:17,679
will actually be in the same position
663
00:24:14,480 --> 00:24:18,480
as you guys where they also need to
664
00:24:17,679 --> 00:24:21,200
liquidate
665
00:24:18,480 --> 00:24:22,799
their position so you can think of all
666
00:24:21,200 --> 00:24:25,760
of these people
667
00:24:22,799 --> 00:24:26,159
that are going to be in a lineup okay to
668
00:24:25,760 --> 00:24:28,320
to
669
00:24:26,159 --> 00:24:30,320
make sure that they sell their position
670
00:24:28,320 --> 00:24:32,880
because you're in a long position
671
00:24:30,320 --> 00:24:33,600
you have to sell obviously to close your
672
00:24:32,880 --> 00:24:35,520
position
673
00:24:33,600 --> 00:24:37,760
but there might be a lot of people ahead
674
00:24:35,520 --> 00:24:38,400
of you so you might not actually catch
675
00:24:37,760 --> 00:24:40,240
it
676
00:24:38,400 --> 00:24:41,520
at eight dollars and fifty cents make
677
00:24:40,240 --> 00:24:44,240
sure that's understood
678
00:24:41,520 --> 00:24:46,480
you might not catch it at eight dollars
679
00:24:44,240 --> 00:24:48,480
and fifty cents exactly right
680
00:24:46,480 --> 00:24:49,840
in fact you might end up catching it at
681
00:24:48,480 --> 00:24:52,320
eight dollars instead
682
00:24:49,840 --> 00:24:53,360
because there's not enough liquidity in
683
00:24:52,320 --> 00:24:55,760
the order book
684
00:24:53,360 --> 00:24:57,840
for you to close your position so if you
685
00:24:55,760 --> 00:25:01,120
were to sell it at eight dollars
686
00:24:57,840 --> 00:25:04,159
if you were to sell it at eight dollars
687
00:25:01,120 --> 00:25:06,880
at 100 coins that's equal to 800 right
688
00:25:04,159 --> 00:25:08,320
800 left but because keep in mind that
689
00:25:06,880 --> 00:25:13,440
you're boring
690
00:25:08,320 --> 00:25:16,640
keep in mind that you've borrowed
691
00:25:13,440 --> 00:25:21,360
the other 700 right so
692
00:25:16,640 --> 00:25:24,880
700 goes back
693
00:25:21,360 --> 00:25:28,000
to the exchange slash funder right
694
00:25:24,880 --> 00:25:31,520
and you keep what's left so
695
00:25:28,000 --> 00:25:34,000
that means that you only keep 100 left
696
00:25:31,520 --> 00:25:35,039
of your money that's kind of scary when
697
00:25:34,000 --> 00:25:37,039
you think about it
698
00:25:35,039 --> 00:25:38,720
so if you actually use bigger figures
699
00:25:37,039 --> 00:25:40,320
like think about it guys okay
700
00:25:38,720 --> 00:25:42,000
think about this if you're playing with
701
00:25:40,320 --> 00:25:45,039
say you're playing with
702
00:25:42,000 --> 00:25:48,000
three thousand dollars now okay
703
00:25:45,039 --> 00:25:48,240
leverage three point three times which
704
00:25:48,000 --> 00:25:51,600
is
705
00:25:48,240 --> 00:25:54,640
scary at ten thousand dollars right
706
00:25:51,600 --> 00:25:55,520
ten thousand dollars yeah so if it if
707
00:25:54,640 --> 00:25:58,559
you bought
708
00:25:55,520 --> 00:26:02,000
if you bought 1 000 coins
709
00:25:58,559 --> 00:26:04,720
at 10 right that equals to 10 000
710
00:26:02,000 --> 00:26:06,159
right you can only lose that you got to
711
00:26:04,720 --> 00:26:09,279
maintain your 15
712
00:26:06,159 --> 00:26:10,159
equity right so if it goes down if the
713
00:26:09,279 --> 00:26:13,120
coin
714
00:26:10,159 --> 00:26:14,720
goes down to say 850 you'll get
715
00:26:13,120 --> 00:26:17,360
liquidated
716
00:26:14,720 --> 00:26:18,080
right now ideally if you sold it at that
717
00:26:17,360 --> 00:26:20,320
price
718
00:26:18,080 --> 00:26:22,720
you'll have loss so because it's at
719
00:26:20,320 --> 00:26:25,440
eight dollars and fifty cents
720
00:26:22,720 --> 00:26:27,039
times one thousand coins that's equals
721
00:26:25,440 --> 00:26:30,880
to eight thousand five hundred
722
00:26:27,039 --> 00:26:34,400
but seven thousand was borrowed okay
723
00:26:30,880 --> 00:26:37,679
that goes back to exchange
724
00:26:34,400 --> 00:26:40,960
right and then you keep what's left um
725
00:26:37,679 --> 00:26:42,400
so of that three thousand dollars you'll
726
00:26:40,960 --> 00:26:44,480
just have left
727
00:26:42,400 --> 00:26:45,520
because you're you know you're taking 8
728
00:26:44,480 --> 00:26:48,559
500
729
00:26:45,520 --> 00:26:51,520
minus 7 000 that goes back to exchange
730
00:26:48,559 --> 00:26:52,720
you're actually left with 1 500 left of
731
00:26:51,520 --> 00:26:56,320
your 3k
732
00:26:52,720 --> 00:26:58,799
so you actually lost half of your money
733
00:26:56,320 --> 00:27:00,559
think of it like that so think about
734
00:26:58,799 --> 00:27:04,240
like this as well right
735
00:27:00,559 --> 00:27:06,320
how would you lose half normally okay
736
00:27:04,240 --> 00:27:07,279
if you were to lose half of your money
737
00:27:06,320 --> 00:27:10,080
normally
738
00:27:07,279 --> 00:27:11,919
as an example right the coin would if
739
00:27:10,080 --> 00:27:13,360
you played only three thousand dollars
740
00:27:11,919 --> 00:27:17,200
right
741
00:27:13,360 --> 00:27:20,320
to lose half the coin would have to
742
00:27:17,200 --> 00:27:24,080
drop to half its value right
743
00:27:20,320 --> 00:27:26,000
so from ten dollars it would have to
744
00:27:24,080 --> 00:27:28,640
drop
745
00:27:26,000 --> 00:27:29,600
to five dollars for you to lose half of
746
00:27:28,640 --> 00:27:32,799
your value
747
00:27:29,600 --> 00:27:34,240
right so think of it like that so it's
748
00:27:32,799 --> 00:27:36,159
actually very scary
749
00:27:34,240 --> 00:27:38,559
when you get liquidated guys and trust
750
00:27:36,159 --> 00:27:39,440
me i've been liquidated so many times
751
00:27:38,559 --> 00:27:42,480
before
752
00:27:39,440 --> 00:27:44,799
and well well well into the past
753
00:27:42,480 --> 00:27:46,240
i have never been liquidated in the past
754
00:27:44,799 --> 00:27:48,640
two years okay
755
00:27:46,240 --> 00:27:49,919
never because i understand the risks
756
00:27:48,640 --> 00:27:53,120
associated with it
757
00:27:49,919 --> 00:27:55,520
i understand the math behind it as well
758
00:27:53,120 --> 00:27:56,240
and this is something that you guys
759
00:27:55,520 --> 00:27:59,279
heavily
760
00:27:56,240 --> 00:28:02,559
heavily need to understand that the risk
761
00:27:59,279 --> 00:28:03,919
associated with leveraging is extremely
762
00:28:02,559 --> 00:28:07,120
scary guys
763
00:28:03,919 --> 00:28:08,399
and i do not recommend it whatsoever to
764
00:28:07,120 --> 00:28:11,600
a lot of people
765
00:28:08,399 --> 00:28:13,520
because guys think about it okay
766
00:28:11,600 --> 00:28:15,120
think about how much money you could
767
00:28:13,520 --> 00:28:19,120
lose and how quickly
768
00:28:15,120 --> 00:28:22,080
it only needs to lose drop about 15
769
00:28:19,120 --> 00:28:22,960
of its value for you to lose half of
770
00:28:22,080 --> 00:28:26,080
your money
771
00:28:22,960 --> 00:28:28,559
because you have to keep in mind that 15
772
00:28:26,080 --> 00:28:30,159
of the value whatever you're playing is
773
00:28:28,559 --> 00:28:33,840
actually multiplied by a
774
00:28:30,159 --> 00:28:37,279
factor of 3.3 right
775
00:28:33,840 --> 00:28:40,320
it's multiplied by 3.3 so 15
776
00:28:37,279 --> 00:28:42,640
times 3.3 i'm just going to get a
777
00:28:40,320 --> 00:28:46,000
calculator of 15 times 3.3
778
00:28:42,640 --> 00:28:48,080
is about 50 of your money so
779
00:28:46,000 --> 00:28:50,159
please make sure guys that you
780
00:28:48,080 --> 00:28:52,320
understand that getting rich
781
00:28:50,159 --> 00:28:53,279
is not about playing with more money at
782
00:28:52,320 --> 00:28:54,880
all
783
00:28:53,279 --> 00:28:56,320
make sure you understand that because
784
00:28:54,880 --> 00:28:59,360
the last thing that i want
785
00:28:56,320 --> 00:29:02,240
is to see you guys get liquidated
786
00:28:59,360 --> 00:29:03,520
and lose a lot more money than you have
787
00:29:02,240 --> 00:29:05,600
to right
788
00:29:03,520 --> 00:29:08,399
please remember as well that these
789
00:29:05,600 --> 00:29:11,440
lessons they don't have to come
790
00:29:08,399 --> 00:29:12,720
at a very expensive cost what we try to
791
00:29:11,440 --> 00:29:15,360
make sure that we do
792
00:29:12,720 --> 00:29:16,720
is we don't focus on chasing money okay
793
00:29:15,360 --> 00:29:20,640
we focus on making
794
00:29:16,720 --> 00:29:22,559
good trades and if we make good trades
795
00:29:20,640 --> 00:29:23,760
then the money will come because it's
796
00:29:22,559 --> 00:29:26,960
going to improve
797
00:29:23,760 --> 00:29:28,720
us as a trader i'm sure that you know
798
00:29:26,960 --> 00:29:30,640
if you're a really good basketball
799
00:29:28,720 --> 00:29:32,399
player or a good athlete
800
00:29:30,640 --> 00:29:34,159
the last thing that you want to focus on
801
00:29:32,399 --> 00:29:35,039
is looking at how much money that you
802
00:29:34,159 --> 00:29:36,640
make right
803
00:29:35,039 --> 00:29:38,080
you want to focus on making sure that
804
00:29:36,640 --> 00:29:39,679
you show up to practice
805
00:29:38,080 --> 00:29:41,600
you want to make sure that you're a part
806
00:29:39,679 --> 00:29:43,440
of the team you want to make sure that
807
00:29:41,600 --> 00:29:44,720
you're playing the sport the way it
808
00:29:43,440 --> 00:29:46,480
should be intended to
809
00:29:44,720 --> 00:29:48,799
be played you want to make sure that
810
00:29:46,480 --> 00:29:49,919
you're becoming a good sportsman
811
00:29:48,799 --> 00:29:51,840
or whatever the word a good
812
00:29:49,919 --> 00:29:54,960
sportsmanship you want to just be
813
00:29:51,840 --> 00:29:55,440
a good athlete all around and then the
814
00:29:54,960 --> 00:29:58,159
money
815
00:29:55,440 --> 00:29:59,840
is simply a bonus do you guys think
816
00:29:58,159 --> 00:30:00,799
someone like michael jordan did it only
817
00:29:59,840 --> 00:30:03,039
for the money
818
00:30:00,799 --> 00:30:04,399
right i don't think he did it only for
819
00:30:03,039 --> 00:30:06,559
the money definitely not
820
00:30:04,399 --> 00:30:08,559
he focused on become being a very good
821
00:30:06,559 --> 00:30:09,360
player and everything else was just a
822
00:30:08,559 --> 00:30:11,360
bonus
823
00:30:09,360 --> 00:30:13,679
so guys make sure that you understand
824
00:30:11,360 --> 00:30:16,240
the concept of how risky
825
00:30:13,679 --> 00:30:17,760
leveraging is i know i've emphasized it
826
00:30:16,240 --> 00:30:19,919
so many times already
827
00:30:17,760 --> 00:30:21,039
but this is something that needs to be
828
00:30:19,919 --> 00:30:24,480
addressed
829
00:30:21,039 --> 00:30:27,840
in high detail because the risk is so
830
00:30:24,480 --> 00:30:28,559
scary guys think about it you're only
831
00:30:27,840 --> 00:30:32,080
dropping
832
00:30:28,559 --> 00:30:35,360
15 percent in value for you to lose
833
00:30:32,080 --> 00:30:38,480
half of your money that is some
834
00:30:35,360 --> 00:30:41,039
scary stuff guys and now all of a sudden
835
00:30:38,480 --> 00:30:42,559
okay if for some reason you couldn't
836
00:30:41,039 --> 00:30:45,840
catch it at eight dollars
837
00:30:42,559 --> 00:30:47,520
and fifty cents and you actually caught
838
00:30:45,840 --> 00:30:50,880
it at eight dollars instead
839
00:30:47,520 --> 00:30:53,440
well you're three thousand dollars
840
00:30:50,880 --> 00:30:54,240
will actually turn into one thousand
841
00:30:53,440 --> 00:30:57,679
dollars
842
00:30:54,240 --> 00:31:01,200
just from a small little drop in fact
843
00:30:57,679 --> 00:31:04,000
usually you end up losing a lot more
844
00:31:01,200 --> 00:31:06,000
okay now i want to explain to you guys
845
00:31:04,000 --> 00:31:06,720
the concept of something called a flash
846
00:31:06,000 --> 00:31:11,200
crash
847
00:31:06,720 --> 00:31:11,200
okay i'm going to pull up a chart here
848
00:31:11,279 --> 00:31:16,480
i want to pull up a chart here for
849
00:31:12,799 --> 00:31:16,480
example with a coin called metaverse
850
00:31:16,840 --> 00:31:20,000
okay
851
00:31:18,240 --> 00:31:22,159
i'm gonna show you guys in detail and
852
00:31:20,000 --> 00:31:26,080
you're gonna know what i'm talking about
853
00:31:22,159 --> 00:31:33,840
in very high detail let's go to uh
854
00:31:26,080 --> 00:31:33,840
a one hour chart actually
855
00:31:34,880 --> 00:31:39,519
right here okay you guys i don't know if
856
00:31:37,600 --> 00:31:40,080
you guys know how to read these charts
857
00:31:39,519 --> 00:31:42,080
yet
858
00:31:40,080 --> 00:31:43,440
but do you see these long wicks which
859
00:31:42,080 --> 00:31:47,279
we'll get into
860
00:31:43,440 --> 00:31:52,000
this coin temporarily
861
00:31:47,279 --> 00:31:55,360
actually dropped okay it temporarily
862
00:31:52,000 --> 00:31:58,480
dropped to a nickel all the way
863
00:31:55,360 --> 00:32:01,760
from three dollars and 39 cents okay
864
00:31:58,480 --> 00:32:05,120
that's right guys it flash
865
00:32:01,760 --> 00:32:08,720
crashed and it literally dropped to
866
00:32:05,120 --> 00:32:11,600
a nickel okay now do you guys wonder
867
00:32:08,720 --> 00:32:13,360
why these happen i'm going to explain it
868
00:32:11,600 --> 00:32:15,679
to you guys in high detail
869
00:32:13,360 --> 00:32:17,279
how these flash crashes happen it's
870
00:32:15,679 --> 00:32:20,880
because a lot of people
871
00:32:17,279 --> 00:32:23,279
are leveraging to go long okay
872
00:32:20,880 --> 00:32:24,159
they're leveraging to go into a long
873
00:32:23,279 --> 00:32:26,880
position
874
00:32:24,159 --> 00:32:27,600
like how you guys might be going long
875
00:32:26,880 --> 00:32:30,559
now
876
00:32:27,600 --> 00:32:31,919
because the price started dropping right
877
00:32:30,559 --> 00:32:35,519
it only needs to drop
878
00:32:31,919 --> 00:32:38,080
15 that's all 15
879
00:32:35,519 --> 00:32:40,080
until everybody starts getting
880
00:32:38,080 --> 00:32:42,080
liquidated
881
00:32:40,080 --> 00:32:44,960
and the exchange they just start
882
00:32:42,080 --> 00:32:47,039
automatically closing people's position
883
00:32:44,960 --> 00:32:48,640
so what the exchange will do to make
884
00:32:47,039 --> 00:32:50,640
sure that you guys
885
00:32:48,640 --> 00:32:51,919
can cover or the people who are margin
886
00:32:50,640 --> 00:32:54,320
trading and they're
887
00:32:51,919 --> 00:32:55,279
leveraging the people who are leveraging
888
00:32:54,320 --> 00:32:58,640
and margin trading
889
00:32:55,279 --> 00:32:59,120
the exchange has to pay back the funder
890
00:32:58,640 --> 00:33:01,120
right
891
00:32:59,120 --> 00:33:02,240
so let's say that i'm the one funding
892
00:33:01,120 --> 00:33:04,880
your margin
893
00:33:02,240 --> 00:33:05,840
like we're just using that 700 as an
894
00:33:04,880 --> 00:33:08,480
example right
895
00:33:05,840 --> 00:33:09,200
it needs to go back to me no matter what
896
00:33:08,480 --> 00:33:11,760
okay
897
00:33:09,200 --> 00:33:13,679
so because it needs to go back to me
898
00:33:11,760 --> 00:33:15,519
since the exchange is clearly not going
899
00:33:13,679 --> 00:33:16,880
to do it right
900
00:33:15,519 --> 00:33:19,039
what they start to do is they
901
00:33:16,880 --> 00:33:19,919
automatically start to close people's
902
00:33:19,039 --> 00:33:23,519
position
903
00:33:19,919 --> 00:33:26,080
but let's say there was a thousand
904
00:33:23,519 --> 00:33:28,640
people that were in the same boat where
905
00:33:26,080 --> 00:33:31,279
they all needed to close their position
906
00:33:28,640 --> 00:33:31,919
so which means they need to sell off
907
00:33:31,279 --> 00:33:34,640
their
908
00:33:31,919 --> 00:33:35,279
coin that they have in this particular
909
00:33:34,640 --> 00:33:37,840
case
910
00:33:35,279 --> 00:33:39,440
it's metaverse right so because they
911
00:33:37,840 --> 00:33:42,000
have to sell off the coins
912
00:33:39,440 --> 00:33:44,240
there's obviously going to be a lineup
913
00:33:42,000 --> 00:33:47,200
of people that need to sell it
914
00:33:44,240 --> 00:33:47,919
and sometimes guys sometimes there's
915
00:33:47,200 --> 00:33:51,279
actually
916
00:33:47,919 --> 00:33:54,559
not enough liquidity there's not enough
917
00:33:51,279 --> 00:33:57,840
coins that will accommodate all of these
918
00:33:54,559 --> 00:34:00,720
people okay so what ends up happening is
919
00:33:57,840 --> 00:34:01,840
there's this there's a cascade of a
920
00:34:00,720 --> 00:34:04,960
waterfall
921
00:34:01,840 --> 00:34:07,039
called a flash crash okay and when this
922
00:34:04,960 --> 00:34:09,359
flash crash happens right
923
00:34:07,039 --> 00:34:11,599
let's say you're in the line you're in
924
00:34:09,359 --> 00:34:12,480
your number 500 of the thousand that's
925
00:34:11,599 --> 00:34:15,520
in a line
926
00:34:12,480 --> 00:34:18,879
waiting to sell these right let's say
927
00:34:15,520 --> 00:34:20,480
that you couldn't sell it at the 15
928
00:34:18,879 --> 00:34:21,919
and let's say you actually ended up
929
00:34:20,480 --> 00:34:24,240
selling it
930
00:34:21,919 --> 00:34:25,520
right at 30 right instead or something
931
00:34:24,240 --> 00:34:28,560
like that you would have
932
00:34:25,520 --> 00:34:30,720
actually lost your entire bank
933
00:34:28,560 --> 00:34:32,320
roll so if you're playing with say that
934
00:34:30,720 --> 00:34:34,720
3 000
935
00:34:32,320 --> 00:34:35,679
instead of because you couldn't retain
936
00:34:34,720 --> 00:34:37,839
that equity
937
00:34:35,679 --> 00:34:39,760
and you need to sell it at whatever
938
00:34:37,839 --> 00:34:42,159
price to pay back
939
00:34:39,760 --> 00:34:42,960
the exchange you could actually have
940
00:34:42,159 --> 00:34:46,079
lost
941
00:34:42,960 --> 00:34:49,200
every single dollar in your account
942
00:34:46,079 --> 00:34:52,159
now in really worst case scenarios okay
943
00:34:49,200 --> 00:34:52,720
in extreme cases because you're simply
944
00:34:52,159 --> 00:34:54,879
trying to
945
00:34:52,720 --> 00:34:56,480
catch it right you're trying to catch
946
00:34:54,879 --> 00:34:58,079
the liquidity
947
00:34:56,480 --> 00:34:59,359
and you notice here everybody's trying
948
00:34:58,079 --> 00:34:59,839
to sell everybody's trying to sell
949
00:34:59,359 --> 00:35:01,920
because
950
00:34:59,839 --> 00:35:03,920
they're in a margin position and they're
951
00:35:01,920 --> 00:35:07,040
trying to liquidate their position
952
00:35:03,920 --> 00:35:10,400
sometimes you will actually go into
953
00:35:07,040 --> 00:35:13,920
the negative that's right into
954
00:35:10,400 --> 00:35:15,359
the negative that's right hear me again
955
00:35:13,920 --> 00:35:16,000
when i'm telling you guys the risk and
956
00:35:15,359 --> 00:35:17,839
i'm being serious
957
00:35:16,000 --> 00:35:19,359
about it that you will actually go into
958
00:35:17,839 --> 00:35:20,400
the negative so if you had three
959
00:35:19,359 --> 00:35:23,680
thousand dollars
960
00:35:20,400 --> 00:35:26,560
right sometimes you couldn't sell enough
961
00:35:23,680 --> 00:35:27,839
of them at a very decent price to stay
962
00:35:26,560 --> 00:35:29,520
positive
963
00:35:27,839 --> 00:35:31,520
you might be selling it right here at
964
00:35:29,520 --> 00:35:33,040
the very very bottom
965
00:35:31,520 --> 00:35:34,560
so because you're selling it at the very
966
00:35:33,040 --> 00:35:37,200
bottom you will actually go
967
00:35:34,560 --> 00:35:38,640
into the negative balance meaning like
968
00:35:37,200 --> 00:35:42,079
minus 1 000
969
00:35:38,640 --> 00:35:45,119
or minus 2 000 or even minus 3
970
00:35:42,079 --> 00:35:45,520
000 whatever price you need to sell it
971
00:35:45,119 --> 00:35:48,160
at
972
00:35:45,520 --> 00:35:49,440
according to the exchange so you can pay
973
00:35:48,160 --> 00:35:52,720
back the lender
974
00:35:49,440 --> 00:35:55,599
that is how these flash crashes happen
975
00:35:52,720 --> 00:35:56,720
because it's because of the cascading
976
00:35:55,599 --> 00:36:00,000
waterfall
977
00:35:56,720 --> 00:36:00,960
of people trying to basically catch the
978
00:36:00,000 --> 00:36:02,560
bottom right
979
00:36:00,960 --> 00:36:04,000
catch the bottom or they're trying to
980
00:36:02,560 --> 00:36:06,160
sell off their position
981
00:36:04,000 --> 00:36:07,599
right and sometimes you're just you keep
982
00:36:06,160 --> 00:36:08,160
trying to catch it it keeps going lower
983
00:36:07,599 --> 00:36:10,480
and lower
984
00:36:08,160 --> 00:36:11,359
but there's simply not enough liquidity
985
00:36:10,480 --> 00:36:14,720
so guys
986
00:36:11,359 --> 00:36:17,280
the risk is real i'm not joking at all
987
00:36:14,720 --> 00:36:19,119
so if you guys ever margin trade you
988
00:36:17,280 --> 00:36:22,320
need to really understand the
989
00:36:19,119 --> 00:36:23,839
the risk okay you guys want to see what
990
00:36:22,320 --> 00:36:25,920
100 looks like
991
00:36:23,839 --> 00:36:27,440
okay you guys want to see what a hundred
992
00:36:25,920 --> 00:36:29,760
percent um
993
00:36:27,440 --> 00:36:30,720
let's let's just use an example okay you
994
00:36:29,760 --> 00:36:33,760
have
995
00:36:30,720 --> 00:36:35,680
you have one hundred dollars right
996
00:36:33,760 --> 00:36:37,200
you have one hundred dollars and one to
997
00:36:35,680 --> 00:36:40,320
leverage on
998
00:36:37,200 --> 00:36:44,160
bitmex for 100x well
999
00:36:40,320 --> 00:36:47,839
100x times 100 is equal to how many
1000
00:36:44,160 --> 00:36:47,839
zeros is that one two three four
1001
00:36:48,560 --> 00:36:52,880
okay so hold on let's i can't even do a
1002
00:36:51,440 --> 00:36:55,200
hundred times a hundred i'm
1003
00:36:52,880 --> 00:36:56,160
slow today that's ten thousand dollars
1004
00:36:55,200 --> 00:36:58,480
okay
1005
00:36:56,160 --> 00:36:59,359
i'm right so that's ten thousand dollars
1006
00:36:58,480 --> 00:37:01,839
that you're playing
1007
00:36:59,359 --> 00:37:03,119
right but only a hundred dollars is
1008
00:37:01,839 --> 00:37:06,000
yours
1009
00:37:03,119 --> 00:37:08,640
right so even if it dropped how much
1010
00:37:06,000 --> 00:37:12,480
here let's take a look
1011
00:37:08,640 --> 00:37:15,839
times point zero one okay
1012
00:37:12,480 --> 00:37:17,839
so if it dropped if it dropped zero
1013
00:37:15,839 --> 00:37:19,040
point zero five percent which is half of
1014
00:37:17,839 --> 00:37:22,720
a percent right
1015
00:37:19,040 --> 00:37:24,880
so 0.05 percent of ten thousand dollars
1016
00:37:22,720 --> 00:37:28,400
is equal to fifty bucks okay
1017
00:37:24,880 --> 00:37:30,640
if the coin dropped fifty dollars
1018
00:37:28,400 --> 00:37:32,560
you would have actually been liquidated
1019
00:37:30,640 --> 00:37:34,640
already okay
1020
00:37:32,560 --> 00:37:36,480
simple as that right so if you're
1021
00:37:34,640 --> 00:37:37,920
playing a thousand dollars
1022
00:37:36,480 --> 00:37:40,320
now let's just say you're playing a
1023
00:37:37,920 --> 00:37:42,320
thousand dollars right
1024
00:37:40,320 --> 00:37:44,079
a thousand dollars so now you can
1025
00:37:42,320 --> 00:37:46,560
leverage a hundred grand
1026
00:37:44,079 --> 00:37:48,400
ooh you can leverage 100 grand okay if
1027
00:37:46,560 --> 00:37:51,839
it dropped 0.5
1028
00:37:48,400 --> 00:37:53,839
you would have actually lost 500 already
1029
00:37:51,839 --> 00:37:55,359
which means that if it dropped only half
1030
00:37:53,839 --> 00:37:57,520
of a percent
1031
00:37:55,359 --> 00:37:58,880
you guys would have lost half of your
1032
00:37:57,520 --> 00:38:00,720
money already
1033
00:37:58,880 --> 00:38:02,880
because you still have to pay back the
1034
00:38:00,720 --> 00:38:05,760
exchange and the funder
1035
00:38:02,880 --> 00:38:07,200
so guys leveraging is it's not cool okay
1036
00:38:05,760 --> 00:38:09,440
not cool at all
1037
00:38:07,200 --> 00:38:11,119
so when you guys see me leverage keep in
1038
00:38:09,440 --> 00:38:14,000
mind that i'm an experienced
1039
00:38:11,119 --> 00:38:14,880
trader and because i only do it because
1040
00:38:14,000 --> 00:38:18,160
i can actually
1041
00:38:14,880 --> 00:38:19,760
see the the realization the profit
1042
00:38:18,160 --> 00:38:22,160
and the and the losses right which
1043
00:38:19,760 --> 00:38:24,320
actually reflects in my balance there
1044
00:38:22,160 --> 00:38:25,839
whereas if you play on a normal exchange
1045
00:38:24,320 --> 00:38:29,200
it actually doesn't show you that
1046
00:38:25,839 --> 00:38:30,079
at all not only that i treat margin
1047
00:38:29,200 --> 00:38:32,960
trading
1048
00:38:30,079 --> 00:38:34,079
as normal as i treat trading on a normal
1049
00:38:32,960 --> 00:38:36,400
exchange account
1050
00:38:34,079 --> 00:38:38,079
because i understand all of the risks
1051
00:38:36,400 --> 00:38:41,040
and i know the math
1052
00:38:38,079 --> 00:38:41,599
inside out guys so if you don't know the
1053
00:38:41,040 --> 00:38:43,760
math
1054
00:38:41,599 --> 00:38:46,079
inside out last thing you want to do
1055
00:38:43,760 --> 00:38:48,880
guys is treat this as free money
1056
00:38:46,079 --> 00:38:50,320
because i assure you it's not free money
1057
00:38:48,880 --> 00:38:52,480
there will come a point
1058
00:38:50,320 --> 00:38:54,160
where you will absolutely get leveraged
1059
00:38:52,480 --> 00:38:57,040
you will you will get
1060
00:38:54,160 --> 00:38:58,160
liquidated and i hear that really often
1061
00:38:57,040 --> 00:38:59,520
okay guys
1062
00:38:58,160 --> 00:39:02,240
i'm sorry my eyes just a little bit
1063
00:38:59,520 --> 00:39:04,480
itchy right now a little bit dry
1064
00:39:02,240 --> 00:39:05,280
so the last thing i want to hear is you
1065
00:39:04,480 --> 00:39:07,520
guys
1066
00:39:05,280 --> 00:39:09,520
getting liquidated because it's bound to
1067
00:39:07,520 --> 00:39:12,079
happen it's inevitable
1068
00:39:09,520 --> 00:39:13,760
why is it inevitable because if you
1069
00:39:12,079 --> 00:39:15,920
don't understand the risk
1070
00:39:13,760 --> 00:39:17,520
and you're chasing money and you're just
1071
00:39:15,920 --> 00:39:19,440
simply chasing
1072
00:39:17,520 --> 00:39:20,960
making profit instead of making good
1073
00:39:19,440 --> 00:39:23,920
trades you also
1074
00:39:20,960 --> 00:39:24,480
clearly don't have the psychological and
1075
00:39:23,920 --> 00:39:27,440
and the
1076
00:39:24,480 --> 00:39:29,359
and the experience to understand that we
1077
00:39:27,440 --> 00:39:30,000
focus on making good trades not making
1078
00:39:29,359 --> 00:39:31,680
profit
1079
00:39:30,000 --> 00:39:34,160
which also implies that you're not
1080
00:39:31,680 --> 00:39:37,040
familiar with risk to reward ratio
1081
00:39:34,160 --> 00:39:39,040
very well and what a stop loss is and if
1082
00:39:37,040 --> 00:39:41,680
you don't have the mental discipline
1083
00:39:39,040 --> 00:39:43,680
to stick to your stop loss then you're
1084
00:39:41,680 --> 00:39:45,280
just going to try to ride it out
1085
00:39:43,680 --> 00:39:46,720
when you're leveraging and when you're
1086
00:39:45,280 --> 00:39:48,560
trying to ride it out
1087
00:39:46,720 --> 00:39:50,480
you will get leverage you will get
1088
00:39:48,560 --> 00:39:52,240
liquidated because you don't know how to
1089
00:39:50,480 --> 00:39:55,040
stick to your stop loss yet
1090
00:39:52,240 --> 00:39:55,440
simple as that so i'm trying to instill
1091
00:39:55,040 --> 00:39:58,000
fear
1092
00:39:55,440 --> 00:39:59,359
into you guys i'm trying to make sure
1093
00:39:58,000 --> 00:40:02,079
that my students
1094
00:39:59,359 --> 00:40:04,240
are not going to be one of those people
1095
00:40:02,079 --> 00:40:06,720
that's simply going to get liquidated
1096
00:40:04,240 --> 00:40:07,520
because if you get liquidated oh my
1097
00:40:06,720 --> 00:40:09,920
goodness
1098
00:40:07,520 --> 00:40:11,200
you guys are going to cry you guys are
1099
00:40:09,920 --> 00:40:12,800
going to cry
1100
00:40:11,200 --> 00:40:15,119
you guys are going to say i'll do better
1101
00:40:12,800 --> 00:40:18,400
next time but guess what
1102
00:40:15,119 --> 00:40:21,599
maybe you already lost your entire bank
1103
00:40:18,400 --> 00:40:23,359
roll and you may never ever be able to
1104
00:40:21,599 --> 00:40:26,000
start up again
1105
00:40:23,359 --> 00:40:27,359
because it's a lot of money guys i don't
1106
00:40:26,000 --> 00:40:28,960
know about you guys
1107
00:40:27,359 --> 00:40:30,720
but i know that a lot of my normal
1108
00:40:28,960 --> 00:40:31,520
friends you're you know they're making
1109
00:40:30,720 --> 00:40:33,520
anywhere between
1110
00:40:31,520 --> 00:40:35,280
two thousand to four thousand to five
1111
00:40:33,520 --> 00:40:37,920
thousand a month
1112
00:40:35,280 --> 00:40:39,520
of work are you willing to throw away
1113
00:40:37,920 --> 00:40:42,000
your months
1114
00:40:39,520 --> 00:40:43,440
of normal work in the stock market
1115
00:40:42,000 --> 00:40:45,920
because of your greed
1116
00:40:43,440 --> 00:40:47,520
to leverage and trust me guys if you're
1117
00:40:45,920 --> 00:40:48,720
not an experienced trader
1118
00:40:47,520 --> 00:40:51,200
you're not going to make it when it
1119
00:40:48,720 --> 00:40:54,160
comes to leveraging you don't leverage
1120
00:40:51,200 --> 00:40:55,200
until you get very good at trading and
1121
00:40:54,160 --> 00:40:58,640
you only start
1122
00:40:55,200 --> 00:41:01,359
very small and it's usually for fun
1123
00:40:58,640 --> 00:41:02,800
right it's definitely fun and you guys
1124
00:41:01,359 --> 00:41:05,599
need to understand as well
1125
00:41:02,800 --> 00:41:06,000
that you should never ever play what
1126
00:41:05,599 --> 00:41:09,599
you're
1127
00:41:06,000 --> 00:41:10,480
not willing to lose whatever money that
1128
00:41:09,599 --> 00:41:14,319
you guys have
1129
00:41:10,480 --> 00:41:17,599
online know with 100 certainty
1130
00:41:14,319 --> 00:41:19,280
that there's a very strong chance that
1131
00:41:17,599 --> 00:41:22,480
you could possibly
1132
00:41:19,280 --> 00:41:25,119
lose everything so know that without
1133
00:41:22,480 --> 00:41:26,880
risk there's no possibility of reward
1134
00:41:25,119 --> 00:41:28,400
don't think of crypto as something where
1135
00:41:26,880 --> 00:41:30,400
you're just getting into it and it's
1136
00:41:28,400 --> 00:41:32,720
going to be very easy money
1137
00:41:30,400 --> 00:41:34,000
nah it's not like that at all guys it's
1138
00:41:32,720 --> 00:41:35,680
going to be very hard
1139
00:41:34,000 --> 00:41:37,359
it's going to be tough you guys are
1140
00:41:35,680 --> 00:41:39,520
going to be grinding at it
1141
00:41:37,359 --> 00:41:41,359
to make those funds so now that we've
1142
00:41:39,520 --> 00:41:43,200
done leveraging and you guys
1143
00:41:41,359 --> 00:41:45,119
understand what that means we're now
1144
00:41:43,200 --> 00:41:47,200
going to talk about what shorting the
1145
00:41:45,119 --> 00:41:49,839
market actually means
1146
00:41:47,200 --> 00:41:50,960
all right so let's talk about shorting
1147
00:41:49,839 --> 00:41:53,040
the market
1148
00:41:50,960 --> 00:41:54,240
so first of all we have to define what
1149
00:41:53,040 --> 00:41:56,640
going long
1150
00:41:54,240 --> 00:41:57,520
means right and we talked about that
1151
00:41:56,640 --> 00:42:00,560
before
1152
00:41:57,520 --> 00:42:03,200
what going long simply refers to is
1153
00:42:00,560 --> 00:42:06,240
buying the price at a cheap price
1154
00:42:03,200 --> 00:42:08,240
and hoping to sell it to make a profit
1155
00:42:06,240 --> 00:42:10,079
and in the example that we went over for
1156
00:42:08,240 --> 00:42:12,319
example if we bought bitcoin
1157
00:42:10,079 --> 00:42:13,520
at six thousand dollars just just one
1158
00:42:12,319 --> 00:42:15,760
bitcoin
1159
00:42:13,520 --> 00:42:18,319
and we were selling it at ten thousand
1160
00:42:15,760 --> 00:42:20,319
dollars well the profit would be
1161
00:42:18,319 --> 00:42:21,760
four thousand dollars because you take
1162
00:42:20,319 --> 00:42:24,560
ten thousand dollars
1163
00:42:21,760 --> 00:42:25,599
minus six thousand dollars now i want to
1164
00:42:24,560 --> 00:42:28,480
tell you guys
1165
00:42:25,599 --> 00:42:29,280
that there's actually a way to make
1166
00:42:28,480 --> 00:42:32,720
money
1167
00:42:29,280 --> 00:42:35,839
on a down trend as well and that method
1168
00:42:32,720 --> 00:42:39,520
is called shorting what shorting does is
1169
00:42:35,839 --> 00:42:41,920
it allows you to bet against the market
1170
00:42:39,520 --> 00:42:42,720
now a lot of people simply think that
1171
00:42:41,920 --> 00:42:44,720
shorting
1172
00:42:42,720 --> 00:42:47,359
refers to okay the price is going to
1173
00:42:44,720 --> 00:42:48,560
drop i will sell whatever bitcoin or
1174
00:42:47,359 --> 00:42:51,520
coin that i have
1175
00:42:48,560 --> 00:42:52,800
and then when it gets cheaper i'm going
1176
00:42:51,520 --> 00:42:55,680
to buy it back
1177
00:42:52,800 --> 00:42:57,680
and i made money because i it's going to
1178
00:42:55,680 --> 00:43:00,000
go back up to that original price
1179
00:42:57,680 --> 00:43:02,160
and i got a chance to buy cheaper no
1180
00:43:00,000 --> 00:43:04,000
that does not mean that at all okay
1181
00:43:02,160 --> 00:43:06,079
we're going to go over shorting and i'm
1182
00:43:04,000 --> 00:43:08,240
going to give you guys an example from
1183
00:43:06,079 --> 00:43:10,240
an old video of mine for shorting
1184
00:43:08,240 --> 00:43:11,760
so let's go over some of the math okay
1185
00:43:10,240 --> 00:43:14,800
we're just going to go over bitcoin
1186
00:43:11,760 --> 00:43:18,319
shorting shorting to bet
1187
00:43:14,800 --> 00:43:18,319
against the market
1188
00:43:19,760 --> 00:43:26,560
um so to bet against the market
1189
00:43:22,880 --> 00:43:30,319
um betting it goes down okay and taking
1190
00:43:26,560 --> 00:43:33,920
profit on the difference in the price
1191
00:43:30,319 --> 00:43:34,720
so shorting is only done through margin
1192
00:43:33,920 --> 00:43:36,880
trading
1193
00:43:34,720 --> 00:43:38,240
and many exchanges actually allow you to
1194
00:43:36,880 --> 00:43:40,880
short just to give you guys some
1195
00:43:38,240 --> 00:43:43,119
examples um
1196
00:43:40,880 --> 00:43:46,560
i think i'm gdax allows you to short i
1197
00:43:43,119 --> 00:43:49,359
know bitfenix does um you know bitmex
1198
00:43:46,560 --> 00:43:51,760
um what else poloniex as well there are
1199
00:43:49,359 --> 00:43:53,440
many exchanges that allows you to short
1200
00:43:51,760 --> 00:43:54,800
if you guys want to play on bitfenix and
1201
00:43:53,440 --> 00:43:57,839
you're american
1202
00:43:54,800 --> 00:43:59,040
vpn guys honestly just get a vpn simple
1203
00:43:57,839 --> 00:44:02,400
as that right
1204
00:43:59,040 --> 00:44:04,880
so shorting is to bet against the market
1205
00:44:02,400 --> 00:44:05,839
betting that it actually goes down
1206
00:44:04,880 --> 00:44:07,920
instead of up
1207
00:44:05,839 --> 00:44:09,839
and taking profit on the difference in
1208
00:44:07,920 --> 00:44:12,640
the price and i will give you guys a
1209
00:44:09,839 --> 00:44:14,800
really good example okay
1210
00:44:12,640 --> 00:44:17,359
let's say that bitcoin is that bitcoin
1211
00:44:14,800 --> 00:44:21,760
is at ten thousand dollars okay
1212
00:44:17,359 --> 00:44:25,680
and you believe it's going to go down
1213
00:44:21,760 --> 00:44:28,400
go down so you enter a short position
1214
00:44:25,680 --> 00:44:29,200
okay at ten thousand dollars and you
1215
00:44:28,400 --> 00:44:32,480
believe
1216
00:44:29,200 --> 00:44:33,760
it's going to go down to nine thousand
1217
00:44:32,480 --> 00:44:36,480
dollars okay
1218
00:44:33,760 --> 00:44:37,920
so what you actually end up doing is
1219
00:44:36,480 --> 00:44:40,160
this okay
1220
00:44:37,920 --> 00:44:41,440
the process goes like this and i will go
1221
00:44:40,160 --> 00:44:44,640
over it in detail
1222
00:44:41,440 --> 00:44:45,680
the process goes like this okay you go
1223
00:44:44,640 --> 00:44:47,280
through your menu
1224
00:44:45,680 --> 00:44:49,280
okay you go through your menu of
1225
00:44:47,280 --> 00:44:51,200
whatever exchange you're going on
1226
00:44:49,280 --> 00:44:53,200
you guys have seen me short positions
1227
00:44:51,200 --> 00:44:54,800
many times on bitfenix so you're welcome
1228
00:44:53,200 --> 00:44:56,720
to review that as well
1229
00:44:54,800 --> 00:45:00,079
every exchange has a different process
1230
00:44:56,720 --> 00:45:01,520
okay you enter your short position
1231
00:45:00,079 --> 00:45:04,240
your short position you know how you
1232
00:45:01,520 --> 00:45:06,480
would buy long at 10 thousand to go long
1233
00:45:04,240 --> 00:45:08,560
well this is just kind of the opposite
1234
00:45:06,480 --> 00:45:09,680
so you enter your short position at ten
1235
00:45:08,560 --> 00:45:12,720
thousand dollars
1236
00:45:09,680 --> 00:45:16,839
now let's talk about behind the scenes
1237
00:45:12,720 --> 00:45:20,319
so what this means is you actually
1238
00:45:16,839 --> 00:45:23,760
borrowed one bitcoin okay
1239
00:45:20,319 --> 00:45:26,960
one bitcoin at ten thousand dollars
1240
00:45:23,760 --> 00:45:30,240
from the exchange to sell now
1241
00:45:26,960 --> 00:45:33,839
makes sense okay so what you're seeing
1242
00:45:30,240 --> 00:45:35,760
is you borrowed one bitcoin
1243
00:45:33,839 --> 00:45:37,040
from the exchange at ten thousand
1244
00:45:35,760 --> 00:45:40,480
dollars to sell it
1245
00:45:37,040 --> 00:45:42,800
now so you're borrowing this in your
1246
00:45:40,480 --> 00:45:43,680
margin account for someone such as
1247
00:45:42,800 --> 00:45:46,000
myself
1248
00:45:43,680 --> 00:45:47,440
who will contribute to the funding
1249
00:45:46,000 --> 00:45:49,680
account there right
1250
00:45:47,440 --> 00:45:51,680
so that's where a lot of the money comes
1251
00:45:49,680 --> 00:45:54,400
from it's not just from leveraging
1252
00:45:51,680 --> 00:45:56,400
it's also from shorting the market so
1253
00:45:54,400 --> 00:45:58,839
now that you borrowed
1254
00:45:56,400 --> 00:46:00,319
okay now that you borrowed now that you
1255
00:45:58,839 --> 00:46:03,520
borrowed
1256
00:46:00,319 --> 00:46:06,880
one bitcoin from the exchange at
1257
00:46:03,520 --> 00:46:10,560
ten thousand dollars you owe them
1258
00:46:06,880 --> 00:46:13,680
one one bitcoin now okay
1259
00:46:10,560 --> 00:46:17,920
so let's see let's say that btc
1260
00:46:13,680 --> 00:46:20,960
does go to nine thousand dollars right
1261
00:46:17,920 --> 00:46:24,640
and now now you buy back
1262
00:46:20,960 --> 00:46:26,240
the one bitcoin okay at nine thousand
1263
00:46:24,640 --> 00:46:29,440
dollars
1264
00:46:26,240 --> 00:46:33,359
right so now you you pay
1265
00:46:29,440 --> 00:46:36,560
back the exchange the one bitcoin
1266
00:46:33,359 --> 00:46:40,079
and you actually profit
1267
00:46:36,560 --> 00:46:41,920
the difference in price between ten
1268
00:46:40,079 --> 00:46:42,560
thousand dollars and nine thousand
1269
00:46:41,920 --> 00:46:45,040
dollars
1270
00:46:42,560 --> 00:46:45,920
okay so because you're actually only
1271
00:46:45,040 --> 00:46:48,960
working with
1272
00:46:45,920 --> 00:46:52,400
one bitcoin that you originally
1273
00:46:48,960 --> 00:46:55,760
borrowed from the exchange to sell now
1274
00:46:52,400 --> 00:46:58,960
at ten thousand dollars they expect you
1275
00:46:55,760 --> 00:47:02,000
to pay them back the one bitcoin
1276
00:46:58,960 --> 00:47:03,599
so if it actually goes down to nine
1277
00:47:02,000 --> 00:47:05,599
thousand dollars
1278
00:47:03,599 --> 00:47:08,079
then that means that you actually got to
1279
00:47:05,599 --> 00:47:09,359
buy back your bitcoins cheaper at nine
1280
00:47:08,079 --> 00:47:13,040
thousand dollars
1281
00:47:09,359 --> 00:47:15,920
right and then you pay back the exchange
1282
00:47:13,040 --> 00:47:18,319
the one bitcoin but hey because you
1283
00:47:15,920 --> 00:47:20,079
originally sold it for 10k
1284
00:47:18,319 --> 00:47:21,760
and you borrowed one and then you bought
1285
00:47:20,079 --> 00:47:23,440
it back at 9k
1286
00:47:21,760 --> 00:47:25,119
and you're giving them the one bitcoin
1287
00:47:23,440 --> 00:47:27,440
back well that's a difference
1288
00:47:25,119 --> 00:47:30,000
of one thousand dollars that you
1289
00:47:27,440 --> 00:47:32,720
actually get to keep for yourself
1290
00:47:30,000 --> 00:47:34,800
okay does that make sense so that's what
1291
00:47:32,720 --> 00:47:36,960
shorting the market actually is
1292
00:47:34,800 --> 00:47:38,480
so if it actually went down to eight
1293
00:47:36,960 --> 00:47:40,160
thousand dollars
1294
00:47:38,480 --> 00:47:42,559
then you would actually get to keep the
1295
00:47:40,160 --> 00:47:46,400
difference between ten thousand dollars
1296
00:47:42,559 --> 00:47:49,680
and eight thousand dollars but
1297
00:47:46,400 --> 00:47:52,240
what happens if it goes up right
1298
00:47:49,680 --> 00:47:53,839
think of going long okay let's say
1299
00:47:52,240 --> 00:47:55,839
you're going long
1300
00:47:53,839 --> 00:47:57,520
at ten thousand dollars and you're
1301
00:47:55,839 --> 00:48:00,160
hoping for it to go to eleven
1302
00:47:57,520 --> 00:48:01,520
thousand dollars well if it goes to 11k
1303
00:48:00,160 --> 00:48:03,599
and you're going long
1304
00:48:01,520 --> 00:48:05,599
you've made a thousand dollars but what
1305
00:48:03,599 --> 00:48:08,640
happens if bitcoin and when you're going
1306
00:48:05,599 --> 00:48:10,800
long from 10k actually drops to 9k well
1307
00:48:08,640 --> 00:48:14,400
you've lost a thousand dollars right
1308
00:48:10,800 --> 00:48:17,920
so let's see let's say you shorted
1309
00:48:14,400 --> 00:48:17,920
at 10 at 10 000
1310
00:48:18,960 --> 00:48:23,760
but the price goes up to eleven thousand
1311
00:48:22,000 --> 00:48:26,400
dollars
1312
00:48:23,760 --> 00:48:26,960
you're like crap i'm gonna hit my stop
1313
00:48:26,400 --> 00:48:28,720
loss
1314
00:48:26,960 --> 00:48:30,400
remember to always make sure that you
1315
00:48:28,720 --> 00:48:32,480
stick to your stop loss right you don't
1316
00:48:30,400 --> 00:48:35,680
want to lose unnecessary money
1317
00:48:32,480 --> 00:48:38,720
you still still have to buy
1318
00:48:35,680 --> 00:48:42,559
back that one bitcoin
1319
00:48:38,720 --> 00:48:45,839
to pay the exchange back okay but now
1320
00:48:42,559 --> 00:48:50,000
you're buying it back at
1321
00:48:45,839 --> 00:48:53,599
11 000 instead of ten thousand dollars
1322
00:48:50,000 --> 00:48:56,640
which is one thousand dollars more right
1323
00:48:53,599 --> 00:48:59,760
which means which means
1324
00:48:56,640 --> 00:49:02,960
you paid one thousand dollars more for
1325
00:48:59,760 --> 00:49:06,079
that bitcoin which means
1326
00:49:02,960 --> 00:49:09,359
you just lost
1327
00:49:06,079 --> 00:49:11,359
1 000 okay that's what it means
1328
00:49:09,359 --> 00:49:12,480
so if you're betting that the market is
1329
00:49:11,359 --> 00:49:14,800
going up
1330
00:49:12,480 --> 00:49:16,000
in a long position but the price
1331
00:49:14,800 --> 00:49:18,960
actually goes down
1332
00:49:16,000 --> 00:49:19,280
then you're out money but if you are in
1333
00:49:18,960 --> 00:49:21,520
a
1334
00:49:19,280 --> 00:49:22,640
short position and you're betting that
1335
00:49:21,520 --> 00:49:25,760
the market will go
1336
00:49:22,640 --> 00:49:28,079
down but it actually goes up
1337
00:49:25,760 --> 00:49:29,359
in price then you're actually losing
1338
00:49:28,079 --> 00:49:33,119
money right
1339
00:49:29,359 --> 00:49:34,720
so it is the exact opposite concept okay
1340
00:49:33,119 --> 00:49:36,480
and i'm gonna show you guys a video
1341
00:49:34,720 --> 00:49:38,480
right now of me
1342
00:49:36,480 --> 00:49:40,000
betting against the market it's a little
1343
00:49:38,480 --> 00:49:42,800
bit of an older video
1344
00:49:40,000 --> 00:49:44,559
but of course i was believing that the
1345
00:49:42,800 --> 00:49:47,839
price was going to go down
1346
00:49:44,559 --> 00:49:49,359
so i actually shorted eos and i shorted
1347
00:49:47,839 --> 00:49:49,760
it because i thought the price was going
1348
00:49:49,359 --> 00:49:53,040
to go
1349
00:49:49,760 --> 00:49:54,240
down and surely enough it did and then i
1350
00:49:53,040 --> 00:49:56,640
actually bought back
1351
00:49:54,240 --> 00:49:59,760
at a cheaper price i paid back the
1352
00:49:56,640 --> 00:50:01,760
exchange the 5000 eos that i borrowed
1353
00:49:59,760 --> 00:50:03,359
right and then i actually got to keep
1354
00:50:01,760 --> 00:50:04,800
the difference so check out this video
1355
00:50:03,359 --> 00:50:07,119
that i'm just about to show you guys
1356
00:50:04,800 --> 00:50:08,880
right now
1357
00:50:07,119 --> 00:50:11,440
hello everybody how's it going today
1358
00:50:08,880 --> 00:50:12,880
it's now march the 27th
1359
00:50:11,440 --> 00:50:14,640
is a tuesday and i'm about to make a
1360
00:50:12,880 --> 00:50:16,960
live trade here in front of you guys
1361
00:50:14,640 --> 00:50:18,960
i decided to short i literally just woke
1362
00:50:16,960 --> 00:50:20,960
up and i decided to short eos
1363
00:50:18,960 --> 00:50:22,559
because of many many reasons so let's
1364
00:50:20,960 --> 00:50:24,240
pull up some of my charts here
1365
00:50:22,559 --> 00:50:26,240
first of all i see that bitcoin is about
1366
00:50:24,240 --> 00:50:28,000
the tank here i noticed on the 10-minute
1367
00:50:26,240 --> 00:50:29,920
chart that's right a 10-minute chart
1368
00:50:28,000 --> 00:50:31,680
i see this bullishly or sort of
1369
00:50:29,920 --> 00:50:34,000
bearishly diverging right here
1370
00:50:31,680 --> 00:50:36,160
this is acting as a very hard resistance
1371
00:50:34,000 --> 00:50:37,760
if you guys notice here for bitcoin
1372
00:50:36,160 --> 00:50:39,520
right because bitcoin is about to fall
1373
00:50:37,760 --> 00:50:40,880
down a little bit right now it's very
1374
00:50:39,520 --> 00:50:44,000
safe to assume
1375
00:50:40,880 --> 00:50:44,480
that eos is also about to fall down so
1376
00:50:44,000 --> 00:50:47,839
i've now
1377
00:50:44,480 --> 00:50:48,400
shorted i'm in a 30 000 position right
1378
00:50:47,839 --> 00:50:51,520
now
1379
00:50:48,400 --> 00:50:53,200
i'm already up about 200 right here
1380
00:50:51,520 --> 00:50:54,720
okay i started shorting it from right
1381
00:50:53,200 --> 00:50:57,359
here i'm probably the one that started
1382
00:50:54,720 --> 00:50:59,119
to catalyze this process and dumped
1383
00:50:57,359 --> 00:51:00,559
um so yeah so we're just about to see
1384
00:50:59,119 --> 00:51:02,240
where it's gonna go i'm now over a
1385
00:51:00,559 --> 00:51:04,160
hundred dollars up right here
1386
00:51:02,240 --> 00:51:05,760
as you guys can quickly see right here
1387
00:51:04,160 --> 00:51:06,640
okay right here i've entered this trade
1388
00:51:05,760 --> 00:51:09,760
at about two
1389
00:51:06,640 --> 00:51:11,359
uh 12 15 right now and at 12 15 that's
1390
00:51:09,760 --> 00:51:11,839
about three minutes into this trade
1391
00:51:11,359 --> 00:51:14,079
right now
1392
00:51:11,839 --> 00:51:15,920
we've got a 6.05 wall that looks like
1393
00:51:14,079 --> 00:51:18,000
it's trying to hold right here
1394
00:51:15,920 --> 00:51:19,040
but of course bitcoin is taking quite a
1395
00:51:18,000 --> 00:51:21,520
beating right now
1396
00:51:19,040 --> 00:51:23,280
so it's also very very safe to assume
1397
00:51:21,520 --> 00:51:24,800
that bitcoin is simply going to fall
1398
00:51:23,280 --> 00:51:26,160
down
1399
00:51:24,800 --> 00:51:28,079
so let's take a look at what's going to
1400
00:51:26,160 --> 00:51:29,920
be going on here i'm just going to pull
1401
00:51:28,079 --> 00:51:30,960
up my bitfinix screen so we can get a
1402
00:51:29,920 --> 00:51:32,559
hold of here
1403
00:51:30,960 --> 00:51:34,000
we notice that it's falling down
1404
00:51:32,559 --> 00:51:35,440
extremely hard right now
1405
00:51:34,000 --> 00:51:37,280
lots of people are selling it off to the
1406
00:51:35,440 --> 00:51:38,640
ak regions we want to see if this is
1407
00:51:37,280 --> 00:51:41,119
going to hold right here
1408
00:51:38,640 --> 00:51:42,160
605 is actually being shattered right
1409
00:51:41,119 --> 00:51:44,240
now as we can see
1410
00:51:42,160 --> 00:51:45,680
it's not really holding too well i'm
1411
00:51:44,240 --> 00:51:47,359
just going to bring up my limit just
1412
00:51:45,680 --> 00:51:49,200
pretty much a little bit up there let's
1413
00:51:47,359 --> 00:51:50,240
go for 0.2 right here let's see if this
1414
00:51:49,200 --> 00:51:51,760
is going to hold
1415
00:51:50,240 --> 00:51:53,599
right i'm literally just right there
1416
00:51:51,760 --> 00:51:55,280
tiny little wall let's see let's just
1417
00:51:53,599 --> 00:51:56,800
keep looking at bitcoin it's holding at
1418
00:51:55,280 --> 00:51:58,319
63 32
1419
00:51:56,800 --> 00:51:59,839
got a nice little wick there that ended
1420
00:51:58,319 --> 00:52:01,359
up rejecting it people are buying it
1421
00:51:59,839 --> 00:52:03,359
back up very slowly
1422
00:52:01,359 --> 00:52:04,800
i might not actually take my profit here
1423
00:52:03,359 --> 00:52:07,680
so let's actually go
1424
00:52:04,800 --> 00:52:08,079
to about zero five let's go to eight
1425
00:52:07,680 --> 00:52:09,839
okay
1426
00:52:08,079 --> 00:52:11,680
zero five eight right here this might be
1427
00:52:09,839 --> 00:52:13,200
end up end up being a little bit more oh
1428
00:52:11,680 --> 00:52:14,559
[ __ ] a little bit too early right here i
1429
00:52:13,200 --> 00:52:16,079
gotta pull down my profit no no i don't
1430
00:52:14,559 --> 00:52:17,839
wanna do that i don't want to do that
1431
00:52:16,079 --> 00:52:20,079
okay i noticed that it's coming down
1432
00:52:17,839 --> 00:52:22,960
here so i will readjust right here
1433
00:52:20,079 --> 00:52:24,000
to 603 i took about a tiny little bit of
1434
00:52:22,960 --> 00:52:25,359
a profit right now
1435
00:52:24,000 --> 00:52:27,440
this still looks like it's trying to
1436
00:52:25,359 --> 00:52:29,119
come down as you guys can notice here
1437
00:52:27,440 --> 00:52:30,720
let's go check out on a very low time
1438
00:52:29,119 --> 00:52:32,720
frame this is getting completely
1439
00:52:30,720 --> 00:52:34,640
rejected at the 100 ema
1440
00:52:32,720 --> 00:52:36,319
so it's very safe to assume that it's
1441
00:52:34,640 --> 00:52:39,440
still going to come down
1442
00:52:36,319 --> 00:52:40,960
i'm up 245 dollars already super easy
1443
00:52:39,440 --> 00:52:44,000
trade i believe
1444
00:52:40,960 --> 00:52:45,760
super super easy trade yep
1445
00:52:44,000 --> 00:52:47,680
i'm just about to get my position filled
1446
00:52:45,760 --> 00:52:49,760
in about 20 seconds i'm guessing
1447
00:52:47,680 --> 00:52:51,359
these walls of red are very encouraging
1448
00:52:49,760 --> 00:52:53,280
to people to sell
1449
00:52:51,359 --> 00:52:55,839
so let's just keep taking a look to see
1450
00:52:53,280 --> 00:52:58,079
what's going to happen
1451
00:52:55,839 --> 00:53:00,720
come on i'm not really that much there's
1452
00:52:58,079 --> 00:53:02,880
not really many people in front of me
1453
00:53:00,720 --> 00:53:04,559
okay bitcoins now going to the 8 000
1454
00:53:02,880 --> 00:53:06,480
range right we see kind of more people
1455
00:53:04,559 --> 00:53:08,800
just selling off right here
1456
00:53:06,480 --> 00:53:10,079
more people are selling off 8 12 8 12
1457
00:53:08,800 --> 00:53:11,119
it's what it's at right now we're
1458
00:53:10,079 --> 00:53:14,079
getting this really
1459
00:53:11,119 --> 00:53:15,520
ugly candle that rejected at the 100 ema
1460
00:53:14,079 --> 00:53:18,240
people are slowly selling off
1461
00:53:15,520 --> 00:53:19,520
selling off selling off and i'm the next
1462
00:53:18,240 --> 00:53:21,680
guy in line right here
1463
00:53:19,520 --> 00:53:23,119
okay there we go i'm just about to get
1464
00:53:21,680 --> 00:53:27,200
my borders filled
1465
00:53:23,119 --> 00:53:28,640
yeah yeah baby that's how you make 375
1466
00:53:27,200 --> 00:53:32,000
dollars
1467
00:53:28,640 --> 00:53:33,440
375 dollars in four minutes
1468
00:53:32,000 --> 00:53:35,280
gg guys i'm going to take this
1469
00:53:33,440 --> 00:53:36,880
screenshot in front of you guys
1470
00:53:35,280 --> 00:53:38,640
and i'm going to post the people to all
1471
00:53:36,880 --> 00:53:40,079
the haters that think that my small
1472
00:53:38,640 --> 00:53:44,800
gains are very crappy
1473
00:53:40,079 --> 00:53:46,800
okay gg so as you guys can see
1474
00:53:44,800 --> 00:53:48,240
shorting is not for the faint of heart
1475
00:53:46,800 --> 00:53:50,880
right it is not
1476
00:53:48,240 --> 00:53:52,079
for the inexperienced trader because not
1477
00:53:50,880 --> 00:53:54,559
only does it deal with
1478
00:53:52,079 --> 00:53:55,359
leveraging it also deals with margin
1479
00:53:54,559 --> 00:53:58,960
account
1480
00:53:55,359 --> 00:54:00,640
and it also goes on it also
1481
00:53:58,960 --> 00:54:02,559
goes against the market where you're
1482
00:54:00,640 --> 00:54:05,280
betting against the market right
1483
00:54:02,559 --> 00:54:06,480
so there's a saying guys never go
1484
00:54:05,280 --> 00:54:08,880
against the trend
1485
00:54:06,480 --> 00:54:11,200
because the trend is your friend right
1486
00:54:08,880 --> 00:54:13,280
the trend will always be your friend
1487
00:54:11,200 --> 00:54:14,720
so you can you don't want to take a lot
1488
00:54:13,280 --> 00:54:17,599
of unnecessary
1489
00:54:14,720 --> 00:54:19,119
risks by going against the market but
1490
00:54:17,599 --> 00:54:21,119
sometimes right
1491
00:54:19,119 --> 00:54:22,559
when you become a more experienced
1492
00:54:21,119 --> 00:54:24,800
trader you might
1493
00:54:22,559 --> 00:54:26,559
want to bet against the market because
1494
00:54:24,800 --> 00:54:28,559
if you bet against the market you can
1495
00:54:26,559 --> 00:54:29,359
actually make money on the downtrend as
1496
00:54:28,559 --> 00:54:31,359
well
1497
00:54:29,359 --> 00:54:33,520
so just to summarize this lesson number
1498
00:54:31,359 --> 00:54:35,839
five video we have covered
1499
00:54:33,520 --> 00:54:36,880
what is leveraging what is margin
1500
00:54:35,839 --> 00:54:40,079
trading
1501
00:54:36,880 --> 00:54:41,040
all the risks associated with it what is
1502
00:54:40,079 --> 00:54:43,119
going long
1503
00:54:41,040 --> 00:54:45,440
and also what is shorting as well so
1504
00:54:43,119 --> 00:54:47,280
we've covered all of the five topics
1505
00:54:45,440 --> 00:54:49,200
i hope you guys have had a wonderful
1506
00:54:47,280 --> 00:54:51,359
time in this class number five
1507
00:54:49,200 --> 00:54:52,559
lesson and i hope that you guys really
1508
00:54:51,359 --> 00:54:54,880
do understand
1509
00:54:52,559 --> 00:54:55,839
all of the risks associated with
1510
00:54:54,880 --> 00:54:58,079
leveraging
1511
00:54:55,839 --> 00:55:00,160
and guys i need to emphasize one more
1512
00:54:58,079 --> 00:55:02,400
time because you guys are my students
1513
00:55:00,160 --> 00:55:04,720
and i genuinely care about you and i
1514
00:55:02,400 --> 00:55:07,200
don't want you to get liquidated
1515
00:55:04,720 --> 00:55:08,640
i don't want you to get to that point
1516
00:55:07,200 --> 00:55:09,920
you know in the real world what they
1517
00:55:08,640 --> 00:55:13,040
call it
1518
00:55:09,920 --> 00:55:16,480
they call it a margin call okay
1519
00:55:13,040 --> 00:55:18,880
and when you get margin called
1520
00:55:16,480 --> 00:55:20,799
like guys like honestly it it makes me
1521
00:55:18,880 --> 00:55:22,240
really upset think about that you know
1522
00:55:20,799 --> 00:55:24,079
like
1523
00:55:22,240 --> 00:55:28,000
it makes me really upset because i think
1524
00:55:24,079 --> 00:55:28,000
back to those days guys of when
1525
00:55:28,160 --> 00:55:34,400
i was liquidated one time for forty
1526
00:55:30,079 --> 00:55:39,040
thousand dollars yeah
1527
00:55:34,400 --> 00:55:40,960
for 40 40 40 000 guys
1528
00:55:39,040 --> 00:55:42,799
it was a lot of it it brings back like a
1529
00:55:40,960 --> 00:55:44,000
lot of memories right now and what i
1530
00:55:42,799 --> 00:55:45,839
actually had to go through
1531
00:55:44,000 --> 00:55:47,280
and the emotions that i had to go
1532
00:55:45,839 --> 00:55:48,079
through and if i feel like it's coming
1533
00:55:47,280 --> 00:55:51,040
back right now
1534
00:55:48,079 --> 00:55:53,359
because of how scary it was guys that
1535
00:55:51,040 --> 00:55:56,400
you guys can see it on my face right now
1536
00:55:53,359 --> 00:55:56,799
how scary it was to lose that kind of
1537
00:55:56,400 --> 00:56:00,480
money
1538
00:55:56,799 --> 00:56:02,480
of 40 000 getting liquidated
1539
00:56:00,480 --> 00:56:04,480
and guys i didn't keep any of it it went
1540
00:56:02,480 --> 00:56:07,760
to zero
1541
00:56:04,480 --> 00:56:07,760
yeah it went to zero
1542
00:56:08,480 --> 00:56:12,720
and the last thing that i want to see is
1543
00:56:10,640 --> 00:56:15,599
for you guys to get liquidated
1544
00:56:12,720 --> 00:56:16,559
because it is the scariest thing that
1545
00:56:15,599 --> 00:56:20,000
can happen
1546
00:56:16,559 --> 00:56:22,559
when you get margin called it refers to
1547
00:56:20,000 --> 00:56:23,520
having to sell basically whatever you
1548
00:56:22,559 --> 00:56:26,240
have left
1549
00:56:23,520 --> 00:56:28,000
just to make up for that having to pay
1550
00:56:26,240 --> 00:56:30,240
back the funder in the exchange
1551
00:56:28,000 --> 00:56:31,440
in this particular case and when you get
1552
00:56:30,240 --> 00:56:33,119
margin called
1553
00:56:31,440 --> 00:56:35,680
and you actually have to liquidate your
1554
00:56:33,119 --> 00:56:36,640
position guys it's the scariest thing
1555
00:56:35,680 --> 00:56:39,839
ever
1556
00:56:36,640 --> 00:56:42,160
don't don't do it don't leverage don't
1557
00:56:39,839 --> 00:56:43,839
don't short like don't do any of those
1558
00:56:42,160 --> 00:56:45,920
things until you get much more
1559
00:56:43,839 --> 00:56:46,640
experience in the market because i want
1560
00:56:45,920 --> 00:56:50,400
to see
1561
00:56:46,640 --> 00:56:53,280
you guys succeed okay and the risk
1562
00:56:50,400 --> 00:56:56,000
needs to be drilled into your head i
1563
00:56:53,280 --> 00:56:58,000
need you guys to understand that okay
1564
00:56:56,000 --> 00:57:00,160
and i want you guys to be happy i want
1565
00:56:58,000 --> 00:57:02,160
you guys to succeed i want you to be
1566
00:57:00,160 --> 00:57:04,559
thrilled with playing the market but i
1567
00:57:02,160 --> 00:57:05,280
don't want you to take these unnecessary
1568
00:57:04,559 --> 00:57:07,520
risks
1569
00:57:05,280 --> 00:57:10,720
and focus on making money because the
1570
00:57:07,520 --> 00:57:12,960
focus should be on what guys
1571
00:57:10,720 --> 00:57:13,920
it should be on making good trades if
1572
00:57:12,960 --> 00:57:16,480
you said that
1573
00:57:13,920 --> 00:57:18,400
so guys thank you very much for joining
1574
00:57:16,480 --> 00:57:20,640
me for this lesson five
1575
00:57:18,400 --> 00:57:22,480
it was a wonderful time talking about
1576
00:57:20,640 --> 00:57:23,680
leveraging talking about the risks
1577
00:57:22,480 --> 00:57:25,760
associated with it
1578
00:57:23,680 --> 00:57:27,920
talking about liquidation talking about
1579
00:57:25,760 --> 00:57:30,480
margin talking about going long
1580
00:57:27,920 --> 00:57:32,240
talking about going short and if you
1581
00:57:30,480 --> 00:57:35,839
have any questions guys
1582
00:57:32,240 --> 00:57:38,319
make sure you are 100 posting it in the
1583
00:57:35,839 --> 00:57:39,520
in the below there's a question and
1584
00:57:38,319 --> 00:57:41,599
answer section guys
1585
00:57:39,520 --> 00:57:42,640
and because you're my students i will be
1586
00:57:41,599 --> 00:57:45,760
very very
1587
00:57:42,640 --> 00:57:47,440
inclined in the next 12 hours to make
1588
00:57:45,760 --> 00:57:49,440
sure that your answers are
1589
00:57:47,440 --> 00:57:50,720
thoroughly answered okay i'm not going
1590
00:57:49,440 --> 00:57:53,280
to leave you guys hanging
1591
00:57:50,720 --> 00:57:54,000
you guys have me i'm your instructor you
1592
00:57:53,280 --> 00:57:56,480
guys have paid
1593
00:57:54,000 --> 00:57:57,200
for the course i'm very grateful for the
1594
00:57:56,480 --> 00:57:58,720
support
1595
00:57:57,200 --> 00:58:00,799
make sure you're asking as many
1596
00:57:58,720 --> 00:58:02,880
questions as you can because i want you
1597
00:58:00,799 --> 00:58:04,480
to learn and that's what i'm here for
1598
00:58:02,880 --> 00:58:06,640
to answer the questions that you guys
1599
00:58:04,480 --> 00:58:06,960
have so thank you very much for joining
1600
00:58:06,640 --> 00:58:08,880
me
1601
00:58:06,960 --> 00:58:10,480
i apologize for getting a little upset
1602
00:58:08,880 --> 00:58:11,599
there when i was talking about losing
1603
00:58:10,480 --> 00:58:13,520
the 40k
1604
00:58:11,599 --> 00:58:16,079
i only got upset because the last thing
1605
00:58:13,520 --> 00:58:18,319
that i want to see are my students
1606
00:58:16,079 --> 00:58:20,319
make the same mistake i don't want you
1607
00:58:18,319 --> 00:58:20,880
guys to make the same mistakes that i've
1608
00:58:20,319 --> 00:58:22,799
made
1609
00:58:20,880 --> 00:58:24,960
i've made them all already and these
1610
00:58:22,799 --> 00:58:25,359
lessons and these advice that i'm giving
1611
00:58:24,960 --> 00:58:27,440
you
1612
00:58:25,359 --> 00:58:28,960
is so you don't have to repeat the same
1613
00:58:27,440 --> 00:58:30,720
mistakes that i've made
1614
00:58:28,960 --> 00:58:33,119
let me make them for us already which
1615
00:58:30,720 --> 00:58:35,280
i've done so have yourselves a great day
1616
00:58:33,119 --> 00:58:36,319
and thank you so much from the bottom of
1617
00:58:35,280 --> 00:58:38,400
my heart for
1618
00:58:36,319 --> 00:58:39,599
all of your love and your support and
1619
00:58:38,400 --> 00:58:41,839
for especially
1620
00:58:39,599 --> 00:58:43,520
joining me on this lesson five i'll see
1621
00:58:41,839 --> 00:58:44,720
you guys in lesson number six and that's
1622
00:58:43,520 --> 00:58:49,280
where the goodies
1623
00:58:44,720 --> 00:58:49,280
begin okay guys take care now bye
112347
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