Does the idea of day trading fascinate, yet intimidate you? Have you considered trading in the stock market, but don’t know where to begin? Do you want to consider your options when planning a retirement with a partner or spouse?
In this episode, Kathryn interviews Jerremy Newsome about investing and step by step on how to turn a modest investment into a comfortable retirement.
Meet Jerremy Newsome
Jerremy Alexander Newsome is on a mission to enrich lives with mentally
liberating education. Since the age of seven, he has been fascinated with
investing and growth and even convinced his father to match his investment deposit for some Apple stock back in 1995, which would be worth $14,000,000.
His passion for helping others enrich their lives through investing led him
to found Real Life Trading in 2014. This starting point has allowed him to
assist and enrich tens of thousands of lives while also growing the company organically to a seven figure business.
In This Podcast
- How Jerremy became interested in investing at age 7
- Limiting beliefs surrounding money
- The difference between fear and greed when it comes to money
- Day trading: what it is and how to do it
- What to consider when investing in stock
How Jerremy became interested in investing at age 7
After watching the scene in Forrest Gump when Lieutenant Dan invests in Apple stock, Jerremy wanted to learn more. He approached his father and begged him to invest in Apple too. He was told if he could come up with the money, his father would match it dollar for dollar. That summer he picked blackberries and made $1,500 and his dad held up his side of the bargain. They bought $3,000 in Apple stock in 1994 and he went on to study finance to learn more.
Limiting beliefs surrounding money
A lot of people think that the love of money is evil. Many people misinterpret and have a polarity that’s not fully intact. Anybody who wants to have more money, who enjoys money, who thinks about money, and who talks about money more than likely loves it.
Most people do love money, however they just don’t want to admit it, they don’t talk about it out loud. There’s a deep seated thought in their brain that they want more of, but they never express it. They never talk about it. You have to speak out loud into the universe to really create it.
The difference between fear and greed when it comes to money
The different distinction is a natural and protective feeling and emotion. There’s times where it’s beneficial and there’s times where it’s not. A lot of people associate the stock market with fear and greed. They hear to by when other people are fearful and sell when other people are greedy.
However the vast majority of people that Jerremy works with want to use the money they make to spend time with their family and give back to their community. Wanting to give money away or to help other people inherently makes you not greedy. Greed is a state of the soul, which can never be quenched by any amount of money. It’s a selfish act in which you get money and you only give it to yourself. There is no giving back to family or community.
There is a distinction between fear and greed in the extent of you can be fearful and applying that fear generally comes from the knowledge of something. Once you become extremely knowledgeable about something, you lessen the fear around it.
Driving’s a great example. If you were 15, you’re checking every mirror, you got your hand on the wheel, 10 and 2, and then a year and a half later, you’re eating a cheeseburger or driving with your knees.
Day trading: what it is and how to do it
Day trading is an exciting way to generate cashflow. Ironically, most of Jerremy’s clients who he works with and who trade with him on a daily basis are generally 50 and older, and are either retired or about to retire. They want something to do with some of their cash so it doesn’t sit there idle. They have a retirement that is already good to go. Or they have a job and they want to grow that retirement so then they’re not always pulling money off of it and it slowly dwindles.
However they didn’t want to keep it all either. That in between time is where day trading comes into play. Day trading can allow someone to create cashflow and also create an engaging, exciting environment where they can take advantage of quick opportunities and quick fluctuations in the market. It is literally going in on Monday when the stock market opens and you’re out before the close of Monday.
What to consider when investing in stock
Investing is as simple as finding companies that you like a lot that you’re extremely knowledgeable in. You use the products, and you benefit from the products and/or services on a daily, weekly, or monthly basis. You’ve done some version of research to expect that company is going to go higher over time, and then you accumulate shares of that company.
An example would be Amazon. We can all agree with 100% certainty that Amazon will not be at $0 between now and the next 10 years. The confidence of knowing that Amazon will be around for the next decade gives us the ability to go accumulate some shares. Buying some positions of Amazon gives you the title of owner and not just a consumer.
Mutual funds are also an option. The slight challenge with mutual funds is that they perform under the stock market, 97% of the time, year to year. If you have, for example, 47,000 mutual funds, you have a 3% chance that you’re going to pick one that over-performed the market once in a given year. Those are pretty low odds.
Jerremy posits to buy the market by investing directly into the stock market. Buy the QQQ, which tracks the the NASDAQ. The NASDAQ has a group of collection of 100 stocks generally tech stocks, tech-oriented companies.
If you buy that and nothing else, you will beat 97% of mutual funds every single year because that’s what they’re trying to beat. They’re trying to beat the Qs. The biggest and best companies in the world and here in the United States are all blended together and they’re giving you an average. You can buy that average over time and you will do extremely well.
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Welcome to the show, Jerremy, I’m so excited to have you here.
I’m equally jazzed up about this, Kathryn. Thank you for having me.
Oh, absolutely. I know we’re going to have an interesting conversation and I want to start out with, because I’m very interested in how early you got interested in your area of expertise.
And I read that you’ve been interested in investing since seven years old.
How did you become interested in investing at that early age when most of us were just learning the color in the lines?
Yeah, it was totally accidental for sure. And you’re going to love this since you’re in Birmingham, but I got started by the movie Forrest Gump.
The fictional Greenville. Is Greenville, Alabama real city, or is it fake?
I think it’s real.
Is it? Yeah, I had no idea.
Yeah. I come through Greenville on the way to the beach.
I love it. I love it. Okay. So, well, anyway, in that movie, I related to Forrest Gump a lot because I was kind of a weird kid and everyone always thought I was a little strange and odd, but there was a time for sure where we were watching that video about 78% of the way through the movie Forrest Gump starts kind of recounting his life.
And he says that Lieutenant Dan invested in a fruit company and they didn’t have to worry about money anymore. I thought that was such an interesting concept because I grew up in the deep sticks of Georgia and I was pretty financially strapped as a kid.
My family, we didn’t have a lot of financial acumen. But we were very happy. I had a great childhood, I was extremely happy. I was just poor. So when Forrest Gump said that they didn’t have to worry about money anymore. That was just such a paradigm shift for me. I had never heard that phrase.
I’d never heard that those words uttered. So when he said that he invested in a fruit company, I asked my dad, what does investing and what is the fruit company? So he told me a little bit about the stock market and kind of how investing works. And then he told me about the fruit company, which was Apple.
I don’t think I made that connection in the movie.
Well, I didn’t either, but that’s the one. So if you rewatch it again, he’s opening this letter and there’s like the Apple logo at the very top of the letter. And it’s hard to spot, but yeah, it’s that was it. So I had told my dad, you need to invest in Apple.
You need to do what Forrest Gump did so that we don’t have to worry about money anymore. He kinda gave me the son, you know, this is a movie doesn’t really work that way. Money doesn’t just grow on trees. I can’t just go out and just get money. Like, we’re kind of, we’re strapped right now.
I begged him. Eventually he said, listen, if you bring me some money, I’ll match it dollar for dollar and then I’ll put whatever you put into Apple. I said, okay. So I went and picked blackberries and sold them door to door in the summer of 1994. So it was like a Bryan Adams song and I made 1500 bucks that summer and brought that to my dad.
He was kind of blown away. So he eventually had to borrow the money from my uncle, but so we bought $3,000 worth of Apple in 1994.
Wow. I love that story. That’s amazing. So that makes me as a counselor wonder, like, were you worried about money at that young age?
It’s a good question. I wasn’t worried about it, but I knew that I saw and I was able to piece together that we didn’t have a lot. A lot of my family members would mention that they didn’t have a lot of money for many of the different various things. I think most children that I’ve worked with and interacted with and taught, they don’t have the same concept of money as adults do. They see money as a thing that you can just easily obtain.
It’s just there. There’s nothing hard about it. Just go get it. And. Everything will be fine. There’s plenty of money to go around and I’m not saying it’s a negative way to approach it at all, but I absolutely just had this random, really altruistic, big macro vision of, well, yeah, just go and get some money.
This is an easy thing. Let’s just go make it happen so that everyone will be happy. I’ve asked a lot of kids I’ve worked with Kathryn, if you had a million dollars, what would you do? 10 years and younger. Almost all of them say I’ll give it to my mom and dad, so they don’t have to work anymore.
I love that because it tells you exactly what children want. They want your time, they want your attention, and that’s all they want.
That’s it. You give them all the money in the world and they’re going to take that money and they’re going to pour it into you so they can just have you more, just hang out and play and spend time with you. Like kids don’t have any association with, I’m going to buy a car until they get like maybe 13 or 14. And that’s when you start getting the material things they want to buy. But until that it’s always give, give, give.
That’s amazing. So before we’re burdened with abstract thinking, we just have this complete innocence of really what’s important about life.
I absolutely love that. And so kind of twisting and turning a little bit away from that as a counselor, especially in the South, a lot of people learn in church that greed is one of the seven deadly sins. Then they start to associate greed with money. Greed is bad and I want money, then I’m greedy and that’s bad.
This is a belief that I help clients pull away from because it’s all or nothing kind of extreme thinking. This fear of being greedy leads them to either not charging their worth or letting go of their money the minute that they get it. How do we know the difference between like fear and greed?
So you just became like my best friend with that question of all time. You hit the nail on the head. I love that you created the association to the greed of having money and so if you have it and you feel like you’re greedy, you just kind of give it away. The different distinction is I think fear is a very natural and protective feeling and emotion. There’s times where it’s beneficial and there’s times where it’s not, but in essence, the greed aspect a lot of people associate the stock market, which is kind of my subject matter expertise in, they associate the stock market with fear and greed. Buy when other people are fearful, sell when other people are greedy. But the really interesting thing is I work with, I mean, truly on any given year, tens of thousands of people from all over the world.
The vast majority of them, I mean like 99.9% of them again when I speak to money and I ask them, what do you want to do with the money? If you’ve made a hundred thousand dollars this year in the stock market, what would you do with it? And it’s again, very simply, I’m going to travel with my family.
I want to spend more time with my family, I want to be with my family, I want to give to my church, I want to give to my community. I want to give to this charity. But if you want to give money away or if you want to help other people, if you want to do anything for anyone other than you inherently, you can’t be greedy.
It’s impossible. Greed is a state of the soul, which can never be quenched by any amount of money. It’s a very selfish act. So you get money and you only give it to yourself. You only buy things for yourself, you only do things for yourself ,you literally don’t give money to your wife, your kids, no one it’s you. It’s yours.
That’s greed. Most people aren’t like that. I mean, if you are okay, you’ll make a lot of money. You’ll have tons of money, but if you’re not greedy, and again, most people aren’t, there is that absolute distinction between fear and greed in the extent of you can be fearful and applying that fear generally comes from the knowledge of something.
If you want to remove fear in your life, once you become extremely knowledgeable about that thing, you lessen your fear. Driving’s a great example. If you were 15, you’re checking every mirror, you got your hand on the wheel, 10 and 2, and then what, a year and a half later, you’re eating a cheeseburger or driving with your knees.
Yeah, that hits home with me. My third child is 15. That analogy truly hits home with me and back to fear. Another thing that I tell my clients is if something scares you and you’re getting anxious about it, use that as a signal, that it probably means something to you.
It’s probably important to you because see, we don’t get fearful or anxious about things that don’t matter to us. So dial into that fear, do more to figure out what that is alerting to and to build on what you said about greed versus fear. If we want to help more people, more money is good for that too.
Right? The better we do for ourselves, the more we have to offer. You can start that foundation, of if you start with very little and you give it all away you don’t have anything to grow, to give in the future.
Yep. You’re a hundred percent correct. My current belief system is that we can only spend two things time or money.
If we don’t have tons of money that we can use tons of time, but most humans have to sleep and eat and spend time with things. And so there is a chunk of time that is at that point limited. And therefore, even though time is a limitless construct in our minds, in our creation in our world, we do have a limited amount of time in which we can do things, while we’re awake and we have to do that wisely.
We have to spend it wisely. You’re absolutely correct. Just like when you want to love someone or you have to love other people, you have to fill up the love inside yourself first. You have to really pour into yourself before you can just do everything for everyone. And then even that aspect by itself, people have to withdraw just a little bit because you can’t be everything for everyone. You will make people upset. You will make people frustrated. People won’t like you at some point. So you have to understand that there is going to be a very specific range. There’s going to be a really, really adequately proportioned amount of people that you and myself and everyone listening to your phenomenal podcast will be able to understand those are the amount of people that you can impact.
You can’t help everyone in the world because not everyone wants your help. And even if you gave it to them, not everyone will receive it or accepted.
Now you’re my best friend. You are speaking my language.
There we go. Love it.
Hopefully I’ve learned a few, but there’s one truth that I’ve learned about interacting with my clients is that there are two inanimate objects we all have relationships with and that’s food and that’s money. What are some of the common beliefs you see about money that need to be reshaped or learn differently or unlearned that really get in the way of growing our money?
Best question I’ve been asked in weeks. I would say the number one is the love of money, because here’s where it gets fun.
There is a biblical scripture that says the love of money is the root of all evil. A lot of people leave out the word root though. They think the love of money is evil. The thing is when you talk about the root of something, that’s the core, that’s the essence. That’s how you get to grow.
And if you want to be a horrible maniacal human being, you have to be greedy and you have to love money. However, if you want to be an altruistic, philanthropic giving, loving human being that just enriches and impacts millions of people, you also have to love money because money is going to amplify who you are. It’s going to amplify your abilities and it’s going to amplify your gifts and your talents.
So the biggest challenge is many people misinterpret, not only that scripture, but they also, they also have this polarity that’s not fully intact because if you want to spend more time with money, if you want more money, if you enjoy money, if you like money, if you think about money, if you talk about money, you probably love it.
And most people do love money. They just don’t want to admit it, they don’t talk about it out loud, they don’t talk about it with their friends, they don’t talk about with their parents, they don’t talk about money at all. And so there’s just this deep seated thing in their brain that they want more of, but they never express it.
They never talk about it. It’s never an open thing and God does not provide things that are silent. You have to make your spoken word true, you have to speak out loud into the universe. You have to really create it. It can’t just be fully in here. It has to be somewhere else, somewhere where you are uttering the power of what you want.
So that you can truly receive it. If you want more money, because you’re a great person, because you’re going to do good things, you’re going to have to talk about it. You’re gonna have to accept the fact that you do love money and loving money does not inherently make you an evil person. It is the root at which you get to decide, if you become evil or not, but just like any tree, every tree starts with a root system and an acorn and it grows and you get to determine what type of tree you turn into be, right?
Are you going to have a beautiful apple tree or are you going to be like a barren tree that has no fruit that no one can receive or no one can use or no can have.
It seems like such a simple concept, but it is so often overlooked. Money in and of itself is an inanimate object. It can’t in and of itself be evil.
It’s up to the person who has it to determine how that money is used.
Yeah, because Kathryn, I mean, money was a recent, I say recent in the span of history. I mean, we’re talking thousands of years old, but if you go back hundred years in just America money looks totally different. If you go back 300 years, the currency that was around 300 years ago is so different than what it is today.
You couldn’t exchange one or the other at all for anything. It would be totally worthless. You couldn’t use it do anything with it. 3000 years ago, you’re using sticks and seashells. And chickens, right and goats, like there’s no actual things. So none of those things are evil. It’s our association with it.
It’s how we spend our resources and what we do and how we help other people. Money is a brick. It can be thrown through your window and caused damage to your home, or it can build a house. So it’s just, like you said, as an inanimate object. It’s nothing in that it doesn’t truly do anything. We get to do all of it with it.
Yeah, I absolutely love that. I’m ready to jump right in and let some of your stock market expertise rain down on us. I’m a recovering perfectionist and I have a lot of perfectionist listening and we have the habit of always telling ourselves, I must know more before I can act.
I must wait and analyze and analyze for the perfect time. We also tend to procrastinate because we see this larger result that we want and it’s such a lofty goal, sometimes unattainable that we tell ourselves we can’t do it. Instead of breaking down that big result that we want into small pieces or steps that it’s actually going to take to achieve that result.
So we might procrastinate and never take steps toward retirement because it’s that big looming thing at the end of the path, can you take us step by step through how to grow a modest investment to get to a comfortable retirement?
Yeah, I can. And what you just described so articulately is really the biggest challenge that most people have is they see this massive thing and they go, well, I’m never really going to be able to do that massive thing.
So I just won’t. I won’t take any steps towards it at all. The way to start investing is to start investing. That’s the best way. And retirement -w hat I would say, number one thing is to define what does retirement mean to you and/or your family? What does that concept mean? What are you going to be doing with it?
What’s your beliefs? What do you want to achieve? Why are you there? All of those things are important because we need to know what you’re going to do it in retirement. What if you don’t do anything? I mean, do you wanna just sit down and watch TV all day or do you want to travel and stay at first class five star hotels.
Do you want to kind of like backpack it a little bit? Do you wanna spend time with the grandkids going to go play golf? You wanna play bridge? Like what do you want to do? And then kind of start backtracking and figuring out how much all those things would cost, because you want to know those numbers.
You want to have some really, really good specific information on how much your lifestyle may cost at that time. Then kind of work backwards a little bit, because I think that most people probably do want to travel and go see countries I’ve never been to and go do experiences I’ve never had and get on the nice giant sailboat and sail from island to island and spend time with their friends and family and get a nice tan and go swimming and be in good shape and eat great food.
That’s probably what most of the people, at least that I’ve worked with, want to do. And I will say upfront, I do not managing anyone’s money. I don’t have a license for it. I’m an educator, but that’s my speciality. I try to deconstruct really complex subjects and make them simple for people to understand.
So investing is as simple as finding companies that you like a lot that you’re extremely knowledgeable in. That you use the products, that you benefit from the products and/or services on a daily or weekly or specifically monthly basis. You’ve done some version of research to expect that that company is going to go higher over time, and then you accumulate shares of that company.
So an example would be Amazon. Everyone listening to your show knows exactly what Amazon is. I can agree with 100% certainty that Amazon will not be at $0 between now and the next 10 years. It will not happen. If Amazon was worthless, absolutely no money that would get bought out by another company, somewhere way before it hit zero.
That kind of confidence, knowing that Amazon will absolutely unequivocally be around for the next decade, gives us the ability to go, okay, let me accumulate some shares. Let me start buying some positions of Amazon because you want to be an owner and not just a consumer. If you consume a product or a company you want to be in that company, because when you own shares, that’s what you’re doing.
Kathryn you’re literally owning a piece of that company. You’re giving yourself the ability to make money while you sleep. You’re owning something that creates value for other people without you having to do well, anything. And so that essence is really what it’s all about is being able to come up with create and dictate a plan for how you can buy and be in positions over the long span of time and accumulate enough positions so that it matters.
And a lot of people go the “let buy into a mutual fund” route. So there’s this random mutual fund that people created for me. I’m just going to go buy into that. The slight challenge with mutual funds is that they perform under the stock market, 97% of the time, year to year. So we’re not talking like one random year they underperform.
We’re talking 97% of the time. They underperform every single year. 97% of them. So if you have 47,000 mutual funds, you have a 3% chance that you’re going to pick one that over-performed the market once in a given year. That’s pretty low odds. And even if you did, my argument is, well, why not just buy the thing that everyone is trying to beat.
Just buy the market, which you can, it’s really easy. You can buy, you can invest directly into the stock market by buying something like this called the QQQ. So the ticker symbol is three Q’s, like the queen. What that does is it tracks what’s called the NASDAQ. The NASDAQ has a group of collection of 100 stocks generally tech stocks, tech-oriented companies.
And if you buy that and nothing other than that, if that’s all you do, you will beat 97% of mutual funds every single year because that’s what they’re trying to beat. They’re trying to beat the Qs. Just buy that. If you don’t want to do anything else, if you want to, if you want a basket of stocks, if you want a diversification of a hundred companies, the biggest best companies in the world here in the United States, they’re all blended together and they’re giving you an average.
You can just buy that average over time and you will do extremely well.
Oh, that is such great advice. So what about those that might say Amazon or the stocks that have been performing really well are overvalued and you shouldn’t buy it because it’s already gone up this much.
That’s a great question. I would say it depends then again, on your investment and or retirement and or money goals.
Because if you want some version of safety and security and reliability, then you can buy the companies that have gone up for a while and are established and have been around. Apple’s a very good example of that. So you can buy Apple, you can buy Amazon, you can buy Facebook. These companies are so large and they impact so many people and they provide so much value for the world.
Owning them will give you upside potential because they’re still going to have the ability to grow over the next 10, 20 years, for sure. But are they going to grow three, four, five, 600%. Probably not. Are they going to grow 20% a year? Most likely. And that’s just getting into those now.
The only way you can get the hyper-growth companies is you go and find the companies that have been around less than 10 years on the stock market. And you start investing in those now. So here’s an example. Your know what Etsy is right?
So Etsy, I’ll pull it up on another screen. Etsy has been on the US stock market since 2015.
So as of this recording around five years. Etsy has gone from approximately $8 a share in 2016, and now it’s $123 a share today. But we know how Etsy works. You probably have used Etsy. at some point. You’ve bought something off of Etsy. I’ve never sold anything on Etsy, but I know people who have sold things on Etsy and with COVID and with the pandemic and with all these situations that are happening in the world right now, people are also using Etsy as a way to generate additional income for themselves and for their family.
They’re creating things and the items, and they’re taking those items and they’re selling them on Etsy and they’re creating income for themselves. So it’s a website that allows people to be entrepreneurs, like immediate entrepreneurs. So that’s an example though of if you want an insane, insane return, you’re gonna have to buy stocks that are a little bit newer.
You’re gonna have to do a little of research on them. You’re gonna have to pour in some time, reach out to professional like myself or someone else who has some experience looking at newer companies and buy into those companies. Another one would be Fiverr. So Fiverr is a website, that everyone can access fiverr.com.
And it’s where you and I can go. Kathryn, let’s say we want to, let’s say our audio kind of gets a little jumbled in this podcast and we want to go and have an audio specialist clean up the audio. We can hire someone for like $10. So the reason it was created, it’s called Fivver as in like $5.
Three, four years ago, everything on there was five bucks. You could hire an audio engineer specialist who lives in the Ukraine for $5 and poof, your audio is amazing. Everything is great. And you spent $5. Now you have a great product. Now it’s a little bit more expensive. You can still find plenty of things on there for $5.
But in essence, it allows people again to create their skills and their talents. So Etsy sell a physical product. Fiverr, you sell your skills and assets online. And again for you, you could have your counseling sessions on Fiverr, where you go, Hey, I’m a specialized counselor, so you’re going to get people not only in Alabama, but you get people all over the world.
And what’s really cool about Fivver is it it’s an Israeli company. So it’s based out of Israel. The reason that’s cool is because all of the companies that are in Israel, Fiverr’s one of the biggest, and it’s brand new, it’s been on the market less than a year. Anyone who lives in Israel, they’re going to want to exposure to what’s called a powerful tech stock.
So if you have companies, mutual funds, banks, hedge funds, and/or retail individual people just like you and I, who live in Israel and they want to exposure to one of their own companies. They’re going to pour into one of their companies that they have created. They’re going to buy Fiverr and it’s going to over time when it caused that stock to go up, because all that money that’s in Israel’s will be pouring into just that company. Just because it’s a, Hey, we made it type of a situation because they don’t have many tech companies that are based in Israel.
Yeah, absolutely. My wonderful personal assistant, I think she hired our great sound editor for the podcast through Fiverr.
That’s too cool. I love it.
Yeah shout out to my editor. What I’m hearing is it is really as simple as getting down to your why. What you want in retirement, what you want to be able to afford, what you want to be able to do, the why that is going to drive you, then reverse engineering, how much that’s going to cost you.
And then when you are looking at stocks for your portfolio, you’re really going to need to know your risk level, to know whether or not you want to go ahead and buy in with the tried and true that are less risky, but maybe provide less growth or dive in more risk, more possibility for growth.
You said that absolutely correct and you can have a blend. You could have 80% of your portfolio in Walmart, Johnson, Johnson, Proctor, and Gamble, and Costco. Then you take the other 20% and you split that 20% up over Fiverr, Etsy, and DraftKings, and then Pinterest, and then you’re done. You have a little bit that it’s in the steady eddies as they’re called, the blue chips, the ones that pay dividends over time, and then you have a little bit of money and some high flyer, high growth, newer companies that can really exponentially grow over the next three, four years or 20 years or whatever.
Absolutely. Let’s make a little shift over to day trading. Can you explain what day trading is? How to do it and who should be doing it?
Yeah, I definitely can do that. So day trading is quite exciting – that’s really at the core – is an exciting way to generate cashflow and the ironic part is my main clients that work with me and that trade with me on a daily basis are generally 50 and older and are either retired or about to retire. And they just want something to do with some of their cash. So it doesn’t just sit there idle. They have a retirement, they already have it good to go, they already know what they’re about to do. They have a job and they want to just grow that retirement so then they’re not always pulling money off of it. And it slowly dwindles.
They didn’t want to keep it either, let’s keep it baseline. Let’s say, Hey, if I can pull money out of my retirement every single year and it just stays the exact same number every single year. When I retire have a million and when I die, I have a million and then I can give that to my kids. But in between that I can live my life. Phenomenal. That’s kind in an essence what day trading can allow someone to do is create cashflow and also create an engaging, exciting environment where you can take advantage of quick opportunities and quick fluctuations in the market.
So in essence, it sounds hard, but it’s not. Day trading I can boil down to second grade math.
Oh, I like that.
Yep. You can easily boil it down to second grade math. In the stock market, you have the ability to make money. If the stock goes up or if the stock goes down, that’s something called shorting. And I won’t explain that massively, unless you really want me to, but you can make money when it goes up or goes down.
So it doesn’t matter the direction, literally irrelevant. If it goes down you can make money, if it goes up, you can make money. Then the second aspect of that is if you buy a thousand shares of any company and it goes up a dollar, you will make a thousand dollars. If you short a thousand shares and it goes down to a dollar, you will make a thousand dollars.
So it’s really easy math, a thousand shares on anything. If it moves up and down a dollar that is your potential gain or reward or loss or risk. So if I want to make a dollar on something and I do a 30 cent stop on a thousand shares. A stop-loss is how you can protect your investment or protect your trade or protect your capital.
So if I do a thousand shares with 30 cents of risk, that’s a $300 risk. Right? So a thousand shares, 30 cents of risk, $300 risk. Thousand shares $1 profit, thousand dollars profit. So I’m risking $300 to make $1,000. You can do that every single day, finding one stock that you just focus on constantly and trade that stock over and over and over and over.
And you can carve out anywhere between 60, 70, 80 cents a day. And if you’re doing it on a thousand shares, that can be six, seven, 800 bucks every single day.
Holy cow that is mind blowing to me. I mean, I’m sure like to you, it seems extremely simple, but my mind is literally blown. Like, I’m just thinking, why the heck have I not been doing this?
So then you’re really only having to research and focus and getting to know one stock intimately and determining its patterns.
Yep. Exactly. You’re a hundred percent correct. You can focus on just one thing. It can be Apple. I traded Apple and nothing other than Apple for two years. 2012 and 2013, like that was my main focus.
I just traded Apple. It can be any company. I mean, I there’s plenty of socks I could suggest that one could focus on, but AMD is another one it’s, advanced micro devices. They make us semiconductor chips or computer chips for your processing speeds and things like that. That particular stock, was the number one most best performing sock on the SandP 500 in 2019.
It moves on average about $3 a day up and down. So if you can find this pattern, get to intimately know this company, you just focused really good on second grade math. You can absolutely have the ability of carving out somewhere between 60 and 80 cents a day on the low end. And if you get really good at the patterns, you buy it low, you sell it when it’s high, you short it when it’s high, you buy it back when it’s low, if you get really good, you can make three, $4 a day trading AMD on a thousand shares is three or $4,000, which is kind of mind blowing. And it’s essence of it is to an extent math based, simplistic trading.
Yeah, it is mind blowing. Cause I’m thinking what one of my super powers is finding patterns.
Oh, you would be an amazing trader!
Find patterns in behavior. I find patterns in thoughts. I think that’s due to my law school training and then my counseling training, putting those two things together. So my mind is absolutely blown. My followup questions are one: how long should you research something and to determine the pattern before you actually start trading it?
That’s a very good question. It doesn’t have to be that long. I generally say for most people. You absolutely should spend time learning anything like whatever your craft is, whatever you want to get better at, whatever you want to hone in on. We should always spend some time getting better at it.
You’re not going to be able to just day one, make a thousand dollars a day and every single day and you’re good to go. Let’s go back to the car example. You need to be able to drive the car. So let’s call it a broker in my world. So a broker is the car. You have buttons that you have to press, you have to press them at the right time and the right place and know what you’re doing.
Certain systems and certain orders. But once you get that down again, that’s like driving a car. That’ll take you what, two, three months maybe, of just practice. Then the patterns themselves. They are patterns that repeat all the time. Visual patterns. When you’re talking about human behavior, Kathryn, that’s what the stock market is.
It’s human behavior. Humans are trading it, even though you can say, well, robots and computers are also trading it. Yeah, but they’re built by humans. So they still react based on what a human would think or programmed them to do. When we have these systems and we have these ordinances and we have these creations, we go, okay, this is what we’re doing, this is why we’re doing it.
This is how we’re doing it. You come up with a system and a plan. So your plan can be, so today that we’re doing this podcast, this recording is a Friday, so I can sit down on Saturday and go, all right. If this particular stock goes down to this particular price, I’m going to buy it.
I’m going to buy a thousand shares. I’m going to set a 30 cent stock, and then I’m gonna set a $1 target and you can set that on the broker. And literally not even be there. It can execute on Monday without even being by the computer and either made a thousand dollars or lost 300. That process, I would say it takes about four months of just practice to know and understand: Do you like this? Is it intriguing? Is it interesting?
I will say women make better traders than men by far. So if most of your listeners and clientele are women, they need to research this stuff because women are an amazing, amazing, amazing traders, in essence, because they have great time management skills.
They’re able to listen internally and figure out are they anxious, frustrated, scared, worried, happy, fearful. They can listen in and tune in and they can emotionally go, I shouldn’t trade today. Or yeah, I should trade today. Or I should get out of this trade earlier or whatever, you can start building up an intuition.
Women love listening to their intuition a lot more than men. Also for guys, it’s more of an ego thing. It’s like, I want to make money so I can provide and blah, blah, blah. They get like this ego thing going on. For women, it’s just as a pattern, it’s just like, Nope, I’m not going to do this and This is why, or I am going to do this and this is why, and they just kinda pull the trigger and that’s that.
The cool news in regards to not only day trading, but investing or something called swing trading. Swing trading is creating cashflow the exact same concept, Kathryn, except maybe instead of a day.
Day trading is literally Monday open I’m in and I’m out before the close of Monday. Swing trading is I get into a stock on Monday for $40 and on Friday afternoon I sell it for 50. I have a $10 profit per share on a thousand shares, which can be $10,000. Your stop loss, your exit was $2 when you got in.
You risked $2,000 to make $10,000. Very possible. That’s called swing trading, owning it for multiple days. The cool part is the patterns in the behavior are fractal. What works on a one minute timeframe, works on a daily timeframe, works on a weekly timeframe, works on a monthly timeframe.
You could look at the patterns. You can look at the sentiment, you can literally see people’s psychology on the screen and it’s wild.
Oh, I’m fascinated. Now that we know how long we need to research before we dive in, where do you go to get that information? Like is there a website? where can I watch this, learn this and research this?
Yep. I went to college at the University of Florida and, go Gators, and I wanted to get a finance degree. Because I thought a finance degree would teach me the exact question that you just asked and I’ll let you know it doesn’t quite do that. It’s taught, but you can probably agree on this in the sense of your legal training and in your background in psychology and learning and talking, you learn the conceptual bigger picture, but it’s on the job training.
It’s really that meat is where you’re going to get all the knowledge that you need to have a really good experience or practice doing anything. A law degree is like, you’re going to have a big, big picture, but you’re still terrified on your first case or you’re going to be wigging out when you’re there and you’re speaking to whoever you’re speaking to the very first time and it’s real. That’s the experience that we need. In finance, when I got the degree, I ended up switching the degree to business management because the finance degree didn’t actually answer, or at least I didn’t feel it answer the questions that I was seeking.
So what I eventually did was studied my face off for four years, read every book, watched every webinar, went to every in-person session. I poured 17 hours into this a day, almost every single day for about four to five years until I got comfortable enough where I go, okay, I can teach this. I created a website that teaches people for free because I spent hundreds of thousands of dollars learning it.
And I was like, well, to prevent a lot of other people’s spending that time with that type of money and heartache, let me just give this knowledge away for free. I created a company called Real Life Trading. I do my absolute best my mission is to enrich lives and I do that by teaching people how the stock market works and how to safely, profitably, and consistently trade it to make money regardless of the market goes up down or sideways.
That is incredible. I’m going to be visiting that website today and probably like calling you and becoming your next client. Cause this sounds so fun.
It is cool. It’s really cool. Here’s where it gets fun.
All right. Did you know you can rent out your house if you don’t live in it? Of course you did. Everyone knows that. Let’s say you have two houses, you live in one, you’re going to rent out the other one, everyone in the real world knows that concept. Did you know, you can rent out your stocks? Yup. You can make rent money on your stocks.
That can’t blow my mind because it’s just like sitting in there percolating and I don’t know what to do with that.
Yeah, no one knows this. That’s just one of those things. When you tell people they’re like, what, it doesn’t make any sense. Also, you have insurance on your house that you’re renting, or you have insurance on the house that you live in.
You also have car insurance, life insurance, all the insurances. You can also insure your stocks. So you can buy insurance on a stock so that you can protect it if it does go down so that you can mitigate your risk, just like home insurance or health insurance or life insurance or any other kind of insurance.
Yeah. It gets deep, real fast, but the cool part is the stock market in essence has been around, let’s say 140 years just to keep math easy. Real estate’s been around for thousands of years. You’re a great, great, great, whoever had some type of property. It doesn’t matter if they rented, it lived in, it, built, it, owned it.
Everyone knows that real estate is it’s tangible. We can touch it. We can go outside and we can see homes. The stock market is mysterious because it’s only been around for a short period of time and most people don’t know how it works. They didn’t have a good teacher, they just totally are learning. When you don’t know anything at all about what you’re doing, but anything investing wise, it’s called gambling. The reason that the stock market is not gambling is because, like I just mentioned to you, you can place parameters where you lose an exact amount each time. It’s an exact amount of money. In gambling, which I do gamble. I go to Vegas all the time. I like gambling, but I keep my losses very small.
I do it just for fun. Cause it’s exciting. So if I lose $400 in gambling, like if you put all your money on red and it has black, your money’s gone and the stock market, you could take Kathryn, every single dollar that you possess, buy Fiverr today and sell it tomorrow. And you can either make or lose a little bit of money.
But it’s not going to go to zero. You’re not gonna lose it all. And that’s the difference between gambling and stock market is you absolutely can have a predefined risk that you can appropriate on any amount of money.
I don’t even know where to go from there. I just, there’s so many questions swirling around in my head.
I’m having trouble picking one. Okay. So this is completely in the other direction. Say you’ve got the person that you’re talking to about retirement and you’re asking them their why and what they want to be able to do in retirement. What if you have a couple and one person wants to do nothing but save for retirement and not live now.
The other person wants to do nothing but spend and not save for the future. What questions would you ask them or what kind of advice would you.
You’re talking about me and my girlfriend. Okay. Hey, this is a good question. Let’s talk. I guess you’re good at the beginning. You said, is there anything I shouldn’t talk about?
No, honestly, the point is, it comes down to that aspect as a relational question in the sense of that’s a communicational thing where you sit parties down, you talk about it. I’m the spender, she’s the saver. And, you come up with boundaries. You come up with constraints, you come up with budgets, but you also come up with compromise.
You come up with okay babe, or Guy or whatever, like whatever that relationship is, husband, wife, friend, partner, whoever you dictate what you can and cannot do. You just come up with compromises because it really is a communication aspect of that point, where you dive into the weeds, you really break it down and why they’re that way also. Don’t just accept it. Like, Oh, you’re a saver. Cool. You can change. I’ve changed millions of savers into investors because. I’ve never met anyone who got extremely rich from saving. I’ve met people who didn’t get poor.
Yeah, exactly. You really have to get down to the need that’s driving the behavior. You spend it all because, you save it all because, how can we find this gray area in which both of our needs can be met and we’re secure enough to move forward together and not be so extreme on one end or the other.
Yeah, bingo. There’s so many creative ways to do it, but you can say, okay, for this month I won’t spend any money and we’ll save all of the money that I would spend and we’ll put it in this account or whatever, and we’ll invest into this thing.
And then, all right, in January, I get to have this lavish trip and I get to spend some money and we just kind of go back and forth because you do have to live. You have to have a good time. We are here now consciously. If we’re here and you have money, you do not want to get sick or have some type of regret.
Or man, I really wish I went to Aruba and went scuba diving. If you want to do that, I mean, let’s go. Both the pawn and the King get put in the same box at the end of the game.
Oh, I like that.
If you were a pawn or a King, the box is coming, start enjoying your life, doing something exciting for sure.
Yeah, absolutely. I could talk to you all day long and hope that we get to talk again.
We should. We’re going to stay in contact after this because I like you. You’re just a great person.
Well, I like you too. Thank you so much. I want to do a little bit more of finding out about you as a person.
And I like to do that through the lightning round. Are you up for that?
Let’s do it.
New car or used car?
Rental real estate. Yes or no?
15 year or 30 year mortgage or pay cash.
I will do this. I’m only going to answer the questions that you asked, but they spur so many good conversations.
All three of these. I’m like, I want to talk about them for hours. That answer, a 15 year mortgage.
Favorite movie and why?
It’d have to be Forrest Gump. Great film inspiring life-changing and just really, really brings you down to earth. Let’s you know that you do not have to be the smartest person in the world, to be one of the most impactful.
Oh, I should have guessed that for sure. Cocktail or mocktail?
Do you have a favorite?
Every Sunday night in the fall, that’s what my husband makes for me. Love it. Absolutely love it. Do you have a favorite bourbon that goes in the old fashion?
No, I don’t. I’m very, I’m one of those super, super easy to please people that just kind of loves variety and will do anything.
So I’ll do anything from, Angel’s Envy to Maker’s Mark to whatever’s around, whatever is available. I do like Blanton’s. Blanton’s is quite nice if they have it available. That’s up in Kentucky. Buffalo trace is great. Yeah, I’ll do anything.
Okay. Sounds good. If you could go anywhere in the world today, where would it be?
Anywhere in the world today at this exact moment, would be in Paris cause I’ve never been.
So want to go to Paris. That’d be amazing.
That’s what popped in my mind at the very first when you said that.
That’s a good one. I have two more questions to wrap it up.
One is where can we go to find you online to learn more about you?
That’s a great quote. I would answer it this way. I just released a podcast with one of my business partners who you absolutely need to interview at some point. Her name is Brittany Turner and her and I created a podcast called from Broke to Woke.
You can find it anywhere podcasts are available. We have on YouTube, Spotify, Apple, iTunes, all that kind of good stuff. So it’s called from Broke to Woke. We kind of do outline our journey. Cause you asked like where people can learn more about me. If you want to learn way too much about me and my background and everything is possible, but it’s not just like a personal sob story fest.
It’s really what we did, how we started as entrepreneurs, how we started from zero and both built multi-million dollar businesses and all the tragedies that occurred throughout that time, then what lessons we learned from them. It’s a great podcast. We’re number three in Lithuania. If you’re wondering.
You know what, you’re higher than I am in Lithuania.
Lithuania is a hard market to break into. That’s a good podcast and I also do have a website, Jerremynewsome.com. My first name is spelled with two R’s. My dad’s name was Jerry and, I was a love baby. Like I was intentionally conceived. And so my mom, calls me, Jerry and me, Jerremy that’s.
That’s how my name came to be.
Jerremynewsone.com is my personal website. Then if you did get interested about the stock market, if I piqued anyone’s interest, my stock market education website is reallifetrading.com.
Okay, fantastic. I’m going to be checking out the podcast and both of your websites and I encourage everyone else to. I want to wrap this up by asking you the same question I ask all my guests, which is what is one imperfect action we can take today to move closer to our best life.
My answer to that. The very first thing that pops in my head is go ahead and write that chapter. A lot of people do not feel their life is worthy enough to be a book or their life story is worthy enough to be turned into a movie. Every one of us has a book inside of us.
Every one of us has a story that should be shared. If you’re listening to this, you might feel that you’re not important, but you’re important to somebody. It could be your kids. It could be a grandkids, or it could be your grand, grand, grand grandkids, seven generations from now that you never meet, and you’re dead way before they are on this earth.
They might want to know who you are, they might want to know what you did. They might wanna know one small, funny thing about you. It could be one page long. They read it and they know who that person was and they know why they were here on this earth. I’ll go ahead and say it to everyone. Write that page.
You’re not going to spell everything correctly. You’re not going to have the grammar right. It’s not going to have a theme. It’s not going to have anything, get that page written, get that chapter written, and that’ll be such a great start, even if you do nothing other than that, it’ll be a really good insight into who you are as a human.
Well, I second that motion. That was absolutely beautiful. So I encourage you to go out today and do exactly what Jerremy just said. Write that chapter of your story because each one of us has a great story to tell. Thank you so much, Jerremy, for being on the show today, I’ve had a blast.
Thank you so much for having me. I appreciate it.
And everybody I’ll meet you right back here next week. Until then go out and take imperfect daily action toward the life that you want.