Student's Journey From Losing It All To $600K In Trading Profits

i highlighted you on instagram the other day and i was like eduardo passed 500 000 and you're like you sent me a screenshot you're like 600. i'm like i can't even keep up i'm sorry hola [Music] leave a comment i don't know which camera to look into i'm not even supposed to look at the camera leave a comment below if you like this studio if you want more joe rogan type stuff um welcome to the studio thanks sensation are you a cousin or a nephew of enrique iglesias no i'm not we're just a fan we were singing i saw this earlier yeah i just saw how the way you sing that song i was like dude i you you shouldn't be trading you should be like singing and stuff i haven't done karaoke and like i used to do karaoke it was so much fun we can't do it it's like all content like licensed copyright you can't sing okay on youtube yes so that was just off i'm sorry five minutes anyways land sensation why do they call you the latin sensation you just called me that i don't know no one's ever called you the latin sensation of training that's the name of this it's gonna be like meet eduardo the latin sensation but i mean that just doing the thing that you taught us right i mean you've done it well you've made six hundred thousand i highlighted you on instagram the other day and i was like eduardo passed five hundred thousand and you're like you sent me a screenshot of like six hundred things i'm like i can't even keep up i'm sorry you said like slow down i'm like my wife wouldn't like that man right is she happy like is your family tell us about that like when you first got into the challenge like what did your family think what did you think when i mean this was how many weeks well obviously uh people don't like that you get into trading that much because it's really really like risky kind of way uh but i think the way i'd see it is risky is not doing it when you have this much of alternative like i was in venezuela back when i uh started the the challenge yeah and uh like i know a thing about risk i know i remember that phrase man that that really caught on yeah yeah so how i see it is i see a lot of uh entrepreneurships and businesses i think they're the same risk as trading as like people don't want to invest five years in trading educating or uh maybe 10 grand or 20 grand even but they're willing to do it in a pizza shop yeah you know so or like nightclub or you waste or even it's not even i would say it's not even just about wasting money it's wasting time like netflix is like 10 bucks a month or 15 bucks a month but it takes your time which i think to me is even more valuable and people don't think like that people are like oh netflix such a good deal i can watch all this for 15 a month but you're wasting hours countless hours of a life where frankly we're all running out of time totally that's you can make money i can make money but none of us are getting back time time is the ultimate you know resource yeah that's right totally and the the way that trading provides time it's a really cool thing like you can do a lot of things while while you're trading yeah and that's well that's why i love trading more than you know entrepreneurship trading like okay 90 both fail but trading has benefits where yes you have to learn yes you have to study but like you can also study at home you can spend time with loved ones you have a pregnant wife right now congratulations dealing with the pregnant wife and then you're going to deal with the the crying baby i don't want to are you going to have headphones when you're trading like yeah you're probably going to be like no i closed the door of my office oh so you got to multitask because you already have a baby so you went through raising one baby while you were trading well we came all the way from venezuela to the u.s and my baby was born here congrats and we had to do a lot of things in order to keep up you know because trading is not a thing that hey um i have cash problems let's trade it's like i have cash problems let's become a doctor yeah like what people think like when i announced that you made 500 000 and you've been in like the challenge for seven years and people are like oh he's making like 70 000 a year that's good and i'm like it's not like linear yeah it's not like oh let's just make seventy thousand i'm not like hiring you to make seventy thousand like what break it down year by year what was your one year two year three year well year one uh i lost money you're too much uh maybe three thousand dollars three thousand yeah okay then uh year two maybe i was rake even year three i started to make money how about about maybe 24 grand a year or so but that's good so after three years you're up roughly 20 25 grand that's right but so that's like less than like a starbucks part-time barista yeah totally or an uber driver yeah right right but the thing is as i was uh leaving here i had too much pressure on me so i i needed to make about 5k with 5k yeah and that's put that puts a lot of pressure you can't really mix trading profits with living expenses so if you're like oh my god i need to make a good trade otherwise my family's out on the street so like you need to set aside money you need to set aside time to focus like okay like you know some people just don't have savings this is why like some people are like oh should i quit my job i'm like no like trading is too speculative get the keep the income as a job study when you can like so many people have so much time like when you get home from your work right like when you're on weekends on your day off and people are just like oh like i'm resting i don't want to think about the market i don't want the amount anything that's when you should push it like if you use your weekends if you use your nighttime if you use your day off gradually you learn enough so that you can quit your job eventually after you make you know six figures did you ever have totally the goal is to add sources of income not to subtract sources of income i don't know why people try to try to like cut sources of income you got to have more sources of income so trading what gives you is uh like it's a skill to pay the bills and to grow your money sorry to interrupt continue so you went from negative 3 000 to break even to like 24 000 24 000 and then i lost it all oh like i it i lost all but it was not 24 grand that i lost i lost my capital which i which i traded so if i blew my account uh i leveraged myself ah no i didn't short um like risk okay the reason why there's a misconception with short selling i know short sellers make a lot of money but for newbie traders it's very risky you have these crazy crazy squeezes right now and then leverage you just can't control it some of the best traders in the world have been mostly right but not exactly right and they use leverage and they get wiped out jesse livermore one of my favorite traders he almost called the exact bottom in the early 1930s but he used leverage he was off by a little bit lost everything committed suicide that's right one of the best traders of all time so one of the best traders of all time can't handle leverage why do average people think they're going to crazy crazy right were you in a money i had to i had to make money no i had to make money in order to support my family so i was like what year was this this was year four year five it was year three and four so so now after the loss with the hotter market with the hopefully you got like you know skill education and a big education like when you lose big like i once upon a time lost 500 000 the press vilified me for it i was like depressed for a while how long was it when you were when you lost the money until like you you felt okay again it was around four months because well that's a that's that's a quick uh morning period i had to i had no choice remember so so you're used to like there's no choice like living in venezuela losing all your money you like this high risk subconsciously you're that's why you're a short seller right you like it like we're taking out some short sellers to dinner tonight now that you say it like that i'm like maybe you're so now that you've made 600 000 let's set aside some for therapy bills i think it's cheaper for short sellers to seek out therapy rather than have losses to subconsciously enjoy it we're gonna take out short sellers tonight i was like should i order the worst items on the menu so they'll like it because they're like this is terrible and then their messed up mindset will be like i love it like this is how short selling would be really interesting this is how shirt size i made jokes i i've made millions of dollars short selling but like at the same time like if you're a short seller you do see the world in a little more cynical view like you see these companies failing you see the stocks going down you you subconsciously train your brain to celebrate when the stocks go down which is not natural normally everyone's excited like oh let me invest in this crappy crypto coin that's going up and it's like fun to cheerlead where you're the opposite yeah i see myself as a price driven kind of trader you know i can the thing about short selling is once you get to know the dark side right i know the dark side you will you will flip really quick on your bias because you know when short sellers are wrong we remember anakin and we learned the dark side the power that's right if you don't flip you're gonna you what percent are you short versus long that's like 65 35. okay that's not too bad you're not all the way dark side but there's still hope for you but 35 percent of my uh of my trades give me about 50 of my profits okay that's on the long side so i made more money on the long side so there's still hope for you you're not a total lost cause set aside some money for therapy i really think it would be good like literally it's funny that you say that but uh i'm into the this biohacking thing right now and that helped me a lot because it's too much stress yeah too much stress so i think i mean part of the reason why i don't short sale anymore zero shorts for me i i prioritize teaching i donate all my trading profits to charity these days i got to think about my students if i were a new student i don't think i should be shorting right now in this crazy market where even outright scams are just squeezing so i don't think it's good and for me as a person it's just less stressful like even when i was like right about a scam and like it was getting busted or was crashing a lot of the time i was too early to reserve shares to short you have stress you get squeezed you know what i love about small caps because you never know until which until when they're going to spike yeah but you know how the how it will end yeah so i love that i know the ending story because we know that most small caps crash we know that when a pump collapses there's a there's a point right yeah there's a pretty predictable pattern whether you like shorting the number four crash or the number six do you like shorting right at max euphoria or do you like the follow-up bounces first red day okay that's my favorite part because it when momentum goes away yeah the bubble lid created by the short sellers and the specular speculators it went you know it crashes so it's i mean i haven't shorted in nearly two years now is it easier or harder to find shares to short these days i think there are a lot of providers right now and it's you're welcome yeah i think that my top students and i created the demand though i'm out a lot of my top students are still in the dark side and now there's like dark side versus light side it's literally like star wars but with stock it's stock wars yeah i think i think it's easier this kind of these days that's why you get so many squeezes yeah right because there's so many shorts so this is the problem this is the gift in the curse of short selling there's more providers there's easier access but the squeezes are infinitely more like when i was short selling if a stock went from like two to like six or two to eight that's it best case scenario now you're getting like two to fifty or like five to a hundred like it's i or you know like dwac where it went from what 11 to 175. it's crazy i was literally thinking about coming out of retirement to short dwac i would have been so early and wrong i'm so glad that i just have like i'm like a recovering addict like i'm literally like an alcoholic and i was thinking about having my first drink and it just would have been a mess it would have been like a five-car pile up it would have been i would have dwac did you short that at all once i saw yeah the sympathy play once i saw that uh dwac crashed i attacked phun went from what um the open on that one was seven and it got to 26 or so and then it crashed all the way to five and then it bounced all the way to 11 i think it was crazy it was all right this was a few days ago um and then you also had like a few months ago gme and amc did you know no because i i only trade small caps so it's my niche and i i found out the hard way what did you lose all your money that one time on was it a large cap no it was a small cap okay uh it was p-i-x-y okay i tried to buy it on a friday pxy there's something wrong with that stock p-i-x-y literally like ghost kitchens like the giga cat economy like it's a good sector like pixy should theoretically do well but the every time it spikes i've traded it a few times yeah it always crashes now i shorted every time have you made more now from your shorts to overcome your losses or is it still like i'm ashamed of that but yeah why are you ashamed no i'm just kidding man but you're not short sellers don't have sense of humors this is one other thing no that's that's why i'm 35 you know what do you what do you think people should do if they were just starting now like you just painted i mean it's good that you're over six hundred thousand but seven years you know you had some losses along the way some real dark times what do you do now i think the best thing to do is to have this as a vision of a long-term kind of investment you know because you're investing not only in stocks you're investing in yourself money and time it takes time yeah and you got to have a little bit of patience uh then i would like i'm a really efficient guy i'm an engineer so i always try to make the most efficient way to get to some place so i think a coach or a you know someone that can help you out a little bit to you know get that uh beautiful curve yeah i'm sure yeah learning core you gotta uh short that and um i think the key is not you know we always when when we get into trading we always like okay how much i will win on this you never think about losing yeah so i think the key of trading is learning how to lose for sure if you don't learn how to lose you're screwed and you've got to think about the potential for loss like everyone's like how do i get ahead so quickly what is the risk like think about your loss before you risk your hard earned money think about how much time you do you need to put in before you start so like don't go into trading be like oh everyone's talking about their gains first of all everyone always talks about their gains we know from academic studies 90 of traders lose so you can't have fomo like oh i'm missing out when everyone else is making money secondly if you do start trading now you can't be like okay i want to be a millionaire in three years right or two years like there's a steep learning curve even with a coach but in different markets like it's actually harder to learn right now you're lucky that you got started in a slower market as i said to all my millionaires like now i mean when you joined the challenge i might have had one or two millionaires did i have any millionaires when you joined michael michael good was my first millionaire tim gratani was just becoming the second millionaire but it was slower and now 2020 2021 i don't i don't i don't i don't think that it's as easy to learn in a fast market because you see so many people making money theoretically making money you see so many plays and it's like i teach pretty conservative rules like cutting losses and stuff like that and in a hot market the conservative rules that i teach actually underperform so you're rewarded for being like undisciplined you're rewarded for being speculative so so it's tougher because normally in a slow market it's like okay here's the pattern here's tim's lessons okay it makes sense i can follow that in a bold crazy bull market that's great the rules don't apply so you're like why should i value the rules so it's actually harder so not all years are created equal you're in year seven but you were fortunate to have really four tough years or five tough years now year six or year seven like i mean now you're making what 50 100 000 a month the past few months crazy are you getting cocky no man i the thing is as i see myself as a trader i don't see myself as a trader but as a risk manager so and as a stress manager so once you see that way when you see trading that way you don't see like you don't expect anything from the market so i'm i'm like you know not not trying to carry myself out of much no that's the right mentality even though you're earning like an annual salary like every month lately yeah but i don't think about that no i think now you think about it you know you know what i have like a 20 bill right in front of my screens just to remind me that i'm not trading points i'm trading money yeah and i have to bring back me to earth so i can you know be careful if you ever get too cocky the market will humble you and it'll be a very expensive lesson so you know you can learn from us you can listen to us you can ignore us the market will humble you totally right it's like i don't need rules i don't need discipline anymore i can do whatever i want let me use leverage i know everything that's usually when you fail that sucks so you have a family you think about your family is your family happy now you have no idea right i can imagine yeah of course it's it's the best the best job in the world because you have time as i said you have time i think what trading does is gives you the time to so you can spend it on the projects that you would like yeah for sure so it it is quite a blessing to to have found this there's a difficult learning curve it's a steep learning curve because it's not like an exact science the first few years but then there's the ultimate reward so you have to go through the fire to get to the rewards totally like everything in life right i i see a lot of people like talking trash about trading like yeah that that doesn't work like i have six months doing that and it's not working and i'm like dude if you put any business you're gonna be like working like three or four years just to break even yeah and then the business start making money but it's like a five or seven year i'm telling you right the hot market spoils people because people a lot of people who don't follow rules and they're not conservative they can make a million or two in a year or two and they're like i don't need it any other way i'm living proof but they don't have perspective of slower markets and then right now 2020 2021 we have this crazy market maybe it continues into 2022 but what about 2023 2024 2025 if you are too aggressive if you don't stay humble you're planting the seeds to your own destruction later on i don't envy people who make too much in a bubble they learn all the wrong rules they might have fun for a little bit but three five seven years down the road they lose everything they're like the lotto winners i don't know if you know like lotto winners like they go bankrupt they lose it all because they're just not like they bet one in a million they got lucky whatever they don't know how to manage their risk they don't know how to manage their fortune and so it's not a question of like if they're gonna lose it it's when so you building your wealth the right way now you think about your 20 bill you think about staying humble for your family you're doing it the right way so whether you make you know a million whether you hit a million in in six months or nine months or 24 months or 48 months like you have your living expenses you can take care of your family you have you know your education and you have a foundation i think that's what what really matters is not just about the money that you make it's the foundation of education and discipline so the fact that you lost it all like do you remember those four months like they were pretty excited i remember right i will never go there yeah yeah i can imagine i will never go there like i when i lost 500 000 it was a tough time i mean it was actually helpful that the press like wrote about me i was on tv at the time and i sucked like i got into heavy drinking like i hated myself but now that i built myself back up it was actually the best lesson because i went away from the rules that i now trade by i didn't know those rules mattered until you had the big loss until you have the big loss you don't realize the downside risk you don't realize the risks that you're taking the loss is going to be your best teacher 100 and once the the thing is uh you start like looking at losses as a good thing when you when you're you're you know getting professionals you're a short sale and you're sick in the head hello like your wife asked you how did you do today you're like that gives me like another level of you know of trusting my system well it's tuition losses are tuition right you're in the academy of the markets and you you had the biggest lesson with the loss the big loss every future loss gives you another lesson like did you do your homework today yes i had a loss but can you control those losses and can your wins outweigh your losses we're going to check back in a year from now and we're going to see where you're at right we're going to see if you're all cocky you're going to have like uh enrique and glacius exist like a v-neck like a blue sequin thing you're going to be throwing cash in the cameras like land sensation is bad let's see what he can do let's see what you can do

2021-12-06 13:07

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