Wealthy Investor TV Episode # 1 How To Trade Stocks

Wealthy Investor TV Episode # 1 How To Trade Stocks

– You would buy a stock at, let’s say, 50. – [Randy] 50. – You’d be willing to sell it at 51? – Correct. – But it’s moving during the day, so you’re selling that stock intraday. Well, the software’s doing it,
you’re not really doing it. – The software’s doing it, right. – So what you’re referring
to, if you have 100 shares and you sell that stock 50
to 51, you make 100 bucks. – [Randy] Correct. – If you have a thousand shares, the stock moves from 50
to 51, you make $1,000. – Correct. – Now, there are some stocks
that you have traded that way while you’re out at a Pilates class, and you’ve bought and sold
it three times in a week. – Right, three times in a week, and that’s been, that’s when
volatility’s really high. (applause) (upbeat music) – Well hello there, it’s Tyrone
Jackson at Wealthy Investor welcoming you to Wealthy Investor TV, this is the place to be
if you wanna hear from successful stock market
traders and investors, and how they did it. Now, I gotta tell you, today’s show is gonna be hot, hot, hot. We have the person who
kicked off our very first Trading Stocks Made Easy podcast, and he’s doing the same
here at Wealthy Investor TV, and hello Randy Hernandez, how are you? – Hello Tyrone. – [Tyrone] Thank you for
coming in and doing this. – My pleasure, I’m excited. – You know, ’cause
we’ve talked about this, when we started the Trading
Stocks Made Easy podcast, it was the highest, most
downloaded show we’ve ever done. – Right. – So I’m really praying that
you’re really good today and this doesn’t suck. – Well I’m camera ready, so that’s good. (laughter) – First of all, you came
with a whole entourage, the whole Hollywood publicist, all these people were here today. – Right, you’re in the Valley, so. – Well that’s true, it is what we do. Actually you came with no one. – Right, no one. – But you did get a free
meal before the show, right? – Right, and I have my own
wardrobe, which is great. – [Tyrone] There we go, we like that. – The blue works. – Yes, the blue definitely
works and you look dashing. – I look good in blue. – Hey listen, everybody wants
to hear about your journey as a stock market trader and investor. As I always like to say no one is born with a stock ticker symbol in their crib. – Correct. – But you’ve managed to
do really, really well, and that’s what I wanna
talk about in this episode is your journey, okay? – Okay, yeah. – I know you have a lot of
ideas why people don’t trade, and how they live their lives, and fears, but we’re gonna get to that. Tell us how you were
introduced to the stock market, and a little bit about your
history and background. – My history and background
is I’m an actor in New York, which is interesting because at the time in the entertainment business,
everyone has a survival job, I don’t care what you’re doing. We’re on Broadway, off-Broadway,
had my own theater company, everyone has something to survive, which is good and bad in
so many different ways. And then, you introduce
me to the stock market, which I was really hesitant
because of the common thing that we had talked about on the podcast is that we didn’t know anything about it. – Right. – I didn’t know what I was doing. All you hear at the time
is what you see on CNN or the money channels and stuff, and you see the ticker
going across the screen and you see the numbers go up and down, but how’s it all work? Being introduced to it
by you, which is great, is that it was really, really easy, as you would say, it
was like 6th grade math. – Right. – You need a calculator, a pen and a pad, and start learning to
get financially educated, and that’s how it really
begins is learning the numbers and what you’re interested in in a stock that you know about. Example, Home Depot. And when I say this to people, like, oh, what are you trading? I’m like, I don’t know, Home Depot. Really, I go to Home Depot. Well, also Verizon. My phone’s Verizon. Yeah, AT&T. Well, I have an AT&T phone, the landline. Yeah, well that’s the
stuff that we know about, and that’s how we start investigating and learning about what
those companies do. What’s interesting about what
those companies also buy, which stock. – Yes, yes. – Which is interesting a lot. – Absolutely, we’re gonna get there. So what I teach is like
the Sesame Street approach to the stock market, and that idea of if
you’re paying a company, perhaps you should think about
actually owning the shares. – Makes total sense. – So what you’re saying
is, just so we’re clear, for you, that was a great place to start? – It was a great place to
start without the pressure because I knew what I was looking at. Where I didn’t know anything
about Exxon, or Mobile. I put gas in my car but
that’s all I really know. I don’t know the ins and outs of it. As time grow on, as I
continued my journey through trading in the stock market, you start getting more
confident in your ability to read a stock, look at the history of a
company and what they do, and that becomes bigger and
better for you as time goes on, and it’s more really a
comfortability that you get when trading, and that’s how I felt. Slow and going, I think we
talked about this before, I’m a conservative guy, it took me awhile. Slow and steady, as I call it, and didn’t really want to
push the envelope so much, even though things were
happening very quickly in a fast way, and I was
seeing positive results. And of course you have the
thing in the back of your head, this can’t stay this way. – Right, now hold on now, ’cause I wanna, ’cause now, fast forward I
don’t know how many years, you’re an experienced trader. I want to take you back because one of the first
trades that I teach that you learned was
something called covered call. Now, let’s just bring
our audience up to speed. This is a trade that, well,
now we could do it every week, back then we could only
do once every 13 weeks, the third Friday of the month. – Yeah, sure, wow. – So when you learned what
we do with covered calls is we buy a stock, we sell an option to
someone we don’t know, and we make guaranteed money. – The next day. – [Randy] The next day, T plus one. – T plus one, T plus one. – So when you first learned
about covered calls, I know this is going back a while, what was your reaction? This guaranteed money to
be made in the market, what was your reaction to that? – What’s the catch? There has to be a catch, and
how can you sell a covered call to someone you don’t
know, and the next day, and actually see what you’re gonna make after you sell your covered call, after you sell a contract
or two contracts, which is a hundred stocks, the next day you literally see it, T plus one in your account, and then it’s off and running. Then you wait for it to
expire or get optioned out. – Right, exercised. – Exercised, and then if
it does get exercised, you’re like, the money’s still there. – I get to keep the money
and I get to keep the stock. – And I’m gonna go back in
on the following Monday– – And make more money. – [Randy] And I’m gonna do it again. – Now, I always say that your suspicion came from the fact that you
were a New Yorker at the time. – Correct. – And in New York you don’t trust anything or anyone in the city. – It’s hard, right. – So when someone goes, hey,
you make this guaranteed money in the stock market, you’re
like, well how does this work without somebody getting
killed or something. – Sure, it’s funny because I
think it’s everyone’s mindset of thinking is that you
just don’t know enough because you’re not in
that world of trading. And after awhile now, it’s funny, later on I still remember
getting calls from my banker guy at Chemical Bank and Citibank
in the city, you know, ’cause they had my phone number,
calling me up on the phone, you know, have you thought
about putting some of your, we look at your savings, put
your savings into the stock. And then I would ask him these questions about this particular stock and
he wouldn’t have the answer. And I was like, no, and
he didn’t really know what he was talking about,
where I knew more than him, and that’s when I started
to really break away. You have to really do
your research, not much, it takes very little to get a big return. – Okay, so you know my
philosophy right now, which basically is most
people in our country, if they really understood
how to trade and invest in the stock market, they would
do very well for themselves. – Very well. – But you must have a financial education. – Absolutely. – You were in tune with that idea of getting a financial education early on. My question to you is why? Were your parents in the market? What fed that desire to
first learn about the market and how it functions? – My parents were not
involved with it all, so as you and I both know I
was in New York at an early age as an actor living in New York city with my survival jobs and stuff, and I was really good with my money, and I didn’t really
understand how to make it become more money quickly, or that fear again of
it’s too good to be true. After I got in and started really financially getting educated by you, and learning about it little by little, it all started to make sense, but everyone else was doing it. And so I was fortunate enough at the time, other than meeting you,
I knew some other people who were actually work on Wall Street, and every time I’d say, well,
what are you doing Randy? And I’d go, well, I’m doing this course with my friend Tyrone, I’m
learning about covered calls. It’s funny, every time I spoke to someone who was really successful on Wall Street, they’re like, ooh, yeah, that’s great. – Yeah, right. (laughs) – Lot of fun, lot of fun. You’re gonna do really well with that, that’s really great you’re learning that. And some other people I
knew that were brokers, handling people’s money,
they were like, oh no, because you were taking
their business from them. – Right, exactly. – That was really an
interesting turn for me to learn about that and
getting that positive feedback from people who are
actually in the business, so that was really a turning point for me, solidifying my financial
education, my financial knowledge of learning about the stock market. – Because we don’t get
that financial education in high school and college, so therefore the financial
markets are kind of like this deep dark mysterious place, and when you invest the time and energy in getting that education,
it makes a lot of sense. And you also understand why
there’s so many rich people from the market itself, right? – Right, yeah. – You and I have talked many
times about this idea of fear. Now that you’re a much
more educated investor, we have this principal in
The Wealthy Investor program that’s we help people, so
you’ve tried to introduce so much of your friendship
circle to the market, and you’ve met with so much fear. Why is that? – Again, it’s the unknown. And you’re right, I have tried, with you, sharing my conversations with
you, doing this on my own, where people would ask
me what I was doing, or people that I knew who are
in our entertainment business and trying to do a survival
job, and they want to, I’m trying to raise money for this play, and I’m like, man! And they’re working, so
some of them are like, we do voiceovers and commercials. You got income coming in, right? They’re like, yeah, I go,
what are doing with it? I put it in the bank. And I would, you need to put it here. – Right. (chuckles) – And I would show them my
page of what I was doing, and I would whip out a
paper and a pencil and stuff and I would do my best to explain to them, open up a Yahoo page, and it’s just the unknown. It’s funny when you talked about that, I was talking about that
earlier with someone again, is that component of fear. Fear is the unknown, and people
are afraid of the unknown. You hit that home really
well, and you still do in all these years later,
you always bring that up with talking about fear because fear is a very large component of learning, especially
in the financial sector. But there’s nothing to be afraid of. Really, fear is just
something that’s in your head, and once you start doing it, which other people in
our group, in our class, we’ve all become successful
with it, it goes out the window. – But why do you think people
have this fear of unknown? The number one fear is okay,
so if I break off $5,000 and put it in an E-trade account, this is the number one
fear, I will lose it all. I’ll have $3.86 left. Whereas if I give to somebody
else, they won’t lose it all, but if it’s under my
control, I will lose it all. Why do you think people
have that response? – They don’t want the
responsibility on their shoulders. They don’t want to have to step up with it and admit that if they gained
it or lost it, it’s on them. But if someone else lost it
for you, say your broker, and he calls you on the phone
with some explanation of why, and oh, the market dipped, you’re not even gonna understand
what he’s talking about. All you’re gonna know is you have nothing. – Right, and that was a bad guy. – That was a bad guy, and
now you’re onto the next guy, which is interesting because
I’ve been down that road as well with my broker,
and I still remember taking all of my IRA from him, and he was like, what
are you gonna do with it, be careful, you know, taking it over, and something I like to
share for time frame, I took it over in October of a year, and by December, two months later, I had made 20% on that money, where he had it for five
years and he made 2% a year. I made 20% in two months. I remember sending him
an email of my statement of what I made, and, we’re
good friends to this day, we’re childhood friends, and it’s funny, he still calls me today for stock tips. – How’s that stock market
trading thing working out? – Yeah, yeah. – There’s something about the brokers. They can’t believe, as an
educated independent investor, that you can beat their strategies. – He’s no longer in the business actually, he actually left the business. – He obviously wasn’t
making any money. (laughs) – As the market came up
an down like in the 2005 when the real estate starting
crashing and everything else, people started panicking
’cause people were pulling out their money because all
of these other situations that were going on, and
I remember that clearly. He’s not in it anymore, and he calls me like,
what are you working on? I’m like, what am I working on? I was like, well, you know, this, and he goes, really? And he would try to find some
angle not to agree with me, for example Bank of America. He was like, Bank of
America’s gonna come back. I’m like, you’re trying to
tell me Bank of America’s gonna shoot up to like
$60, $70 a share again after it dived downward? To this day, nothing. And I remember him trying
to sell me on so much. – Now, the cool thing is,
you are both a trader, there are stocks that
you jump in and out of with regularity, and
you’re also an investor. Now, we don’t want to
mention any particular names ’cause this is not about
recommending any particular stocks, even though you already did that. We won’t edit that out. (chuckles) – Well, people, I think, in this day today with all the commercials
and everything else, people have a little bit
more of a better idea than we had when you introduced
it to me back in 2000. People are now aware of it. I think it’s on people’s radar honestly. To like, hmm, what if? But then they don’t take that next step because now it’s finding
someone who to trust, and going back to your question, I tried to find people on my own stuff. Like putting ads out,
like, I’m in this thing, come to see Tyrone Jackson
and get a percentage off. Mention my name. (laughter) Nothing off for you, nothing
I was gaining for anything, it was just so fundamentally right to get financially
educated, and I, like you, with being in the entertainment business, I knew a lot of people
who were struggling. And so here’s something you
can do and follow your craft, and do the things that you want to do. – And have financial
freedom at the same time. – [Randy] And have financial
freedom at the same time. – And you and I both know, that the internet changed everything. When we started trading,
it was dial-up right? So I had a disc, I’m like,
Randy, where do I put it in? And then something would happen. (imitating static hiss) – And sometimes you gotta go downtown if somethings not working out. (laughs) – And then all of a sudden
you magically get online, and there’s this online trading account which you’d open, username and password, wow, username and password, and you would execute your trades. Now, it’s a lot different. Let’s just switch the topic now ’cause you’ve been so successful, let’s talk a little
bit more about trading. – Okay. – Okay, so we start off with covered call, and then volatility trading shares, which most people think
is day trading, it’s not. You buy your shares, you tell the software where to sell these shares. In the program I talk about
the dollar move all the time. You love volatility trading. – When volatility is
working, it’s the best. – It is hot.
– It’s hot. People are like, oh, that’s gambling. Okay, for argument’s sake,
let’s say that it kinda is, but there’s a little bit more to it. There’s definitely a little
bit of thinking behind it ’cause you have to follow the company or the stock you’re working with, you have to see what’s going on. As we got better,
financially educated again, you see these trends of
what this company’s doing and how it works. Very simple, again, it’s very simple math and a lot of visual, right? We look at our picture and we have math so those things come into play, but when volatility is there, it’s hot. – Yes, mostly in the fourth quarter. – [Randy] Mostly in the fourth quarter. – Okay, because of
adjustments to portfolios, et cetera, et cetera. So when you buy a stock,
do you favor a 50 cent move in the stock before you
sell it or the dollar? Now, I like the dollar move
more than anything else so I always choose a stock where there’s a lot of volatility. – Right, well, I’ve had this
conversation with people. I like the dollar too. People would don’t have an
account will talk about, oh, they’re talking about
this, and the taxes this, and the in and out, and the fees. Yeah, yeah, yeah, okay fine. So I help them out like I say,
okay let’s say it’s a dollar. Now, this dollar goes three times a week. – Well, hold on. So you would buy a
stock at, let’s say, 50, you’d be willing to see it at 51. – Correct. – But it’s moving during the day, so you’re selling that stock intraday. Well, the software’s doing it,
you’re not really doing it. – The software’s doing it, right. – So what you’re referring
to, if you have 100 shares, and you sell that stock 50
to 51, you make 100 bucks. – [Randy] Correct. – If you have a thousand shares, the stock moves from 50
to 51, you make $1,000. – Correct. – Now, there are some stocks
that you have traded that way while you’re out at a Pilates class and you’ve bought and sold
at three times in a week. – Right, right, three times in a week, and that’s when volatility’s really high. And it’s great because the
software does that for you, and it really takes the
pressure off of you, so it’s great when you get the email, and you’re like wow, it’s out already. So, it has happened, people
ask about day trading ’cause it’s happened during the day where I’ve done it at 10
o’clock in the morning and by one o’clock in the
afternoon, I get an email that it moved that quick. – [Tyrone] That your shares were sold. – Shares were sold. – And that email, do you have a certain, some of my students have
a ring on their phone. Some people have a cha-ching, so when they get the
email from their broker, they’re like, man, I just made money. Do you have a ring on your phone? – I have a bell. I have like a door bell, ding ding. So that’s what I have and I love that ’cause that is the
distinctive bell on my phone for that particular thing
when I get that email. So I get a bell, so
it’s really interesting. – We have to go to
commercial here in a second, but just in the last, let’s
say, six months or so, your best trade would be what? Not the stock, but how much did you earn? – Uh, how much I earned
in a short period of time? 7,500. – Okay, so you made 7,500
trading in five days? – In five days. – Okay, let me just
stop here for a second. That was legally, right? – Yes, legally. (laughter) Yes, legally, five days, 7,500. Five days. – It is possible, and
it’s not every five days, but with some consistency it is possible to use automated trades? – Absolutely. The software does everything
for you, which is also great. And it’s an easy learning tool, and all of them do it, but that I really like to push
when people ask me about it. That is such a piece of
mind that you have that because we’re busy. We have families, I
have families, my kids, we’re doing stuff. You know, I can be at my
daughter’s softball game or volleyball game with the kids, and knowing that is done,
and then I get the email. – That the trade is
fired and you made money, you log into your account. – Then it’s like, okay, great
I’ll get to it tomorrow. It’s done, it’s over. It’s great, you know. – Isn’t it a great way to make money? – It’s a great way to make money. It’s a great way, I think, for me, to really know that, to get financially educated
and learn about finances in such an easy way has been a load off, and people are like, it’s just
another thing to worry about. (laughter) How is that another thing to
worry about of making money and you don’t have to
punch a clock or something, and you get to do what you wanna do? I mean, that’s really amazing. – Well, I’m so glad to hear
because you’re helping me spread the gospel of wealth
and financial education. – Absolutely.
– When we come back after the break, we’re gonna
gonna talk to Randy Hernandez about how he uses his trading profits to not only benefit his life
but also to help his family. How many kids do you have now, 16? – Something like that. – Yeah, it’s just getting
bigger and bigger. But more with Randy Hernandez right after you take a look at this. Hey, it’s Tyrone Jackson,
The Wealthy Investor, and I know something about you. You’re always wondering
what stocks you should trade and what stocks you should invest in. That’s why you can follow my trades every single week at witradeschool.com. You see, at WI Trade School
I help people just like you make money in the stock market, whether the market goes up,
goes down, or stay the same. And one of the benefits of
becoming a WI Trade School member is I’ll answer your trading
questions every single week in my video blog. Now, the best thing about WI Trade School, you have access to it 24 hours a day as long as you have an
internet connection. So log on to witradeschool.com,
or click below, and I’ll see you there. It’s time for me to help you make money in the stock market right now. Hey hey, welcome back
traders and investors, and today on Wealthy Investor TV we’re going to continue our
discussion with Randy Hernandez. Before the break, we asked
you about your best trades, covered calls, I want to
talk about how you have used your trading profits to help your family ’cause your family has just grown. You have two twins. – Two twins, I have a 13
year old, 17 year old, and a 22 year old in college. – [Tyrone] Okay, say those numbers again. 13, two twins– – To twins, twins that
three, a 13 year old, 17 year old, and a 22 year old. – That’s a lot of kids. – [Randy] It’s a lot of
kids, it’s a lot of work. – It’s expensive too. – [Randy] It’s very expensive. – Okay, how do you use
your trading profits towards your family life? Do you dip in and take those
profits every once and awhile, use them in your life, do you just roll them in your account? How do you work that out? – It depends. All my kids have accounts
now, so that’s great. We start them off with a stipend, and I teach all of my kids, even my twins, I put it in front of the screen and I say this is yours, you know? – And they’re how old? – [Randy] Three. – Right, now let me stop ’cause you and I were both
raised by single moms. – Yeah, correct. – Wouldn’t we be in a totally
different place if at three our mothers were showing us
on a computer. (chuckles) Your kids are very lucky. – Yeah, and when they see what I’m doing, like, why are in front of a
computer sometimes for awhile? I’m like, well, and we’ll sit down, and I’m looking at this
and I’m studying that, you know, really simple stuff. And I give them a little simple math. I go, look at this stock is at $25 and it went to $30. And they’re like, oh wow, look at that. I go yeah, by the way, this is yours. – Oh, wow. – And then they see it. And of course my 13 year olds like, can I get any of that right now? (laughter) – The teenagers always
want the money right then. – I’m like, no you can’t, but you will. My 13 year old now is like,
can I use that towards a car? I’m like, you know what, you possibly can. But the other stuff that I do, sometimes I roll it over. Yeah, I definitely dip in,
that’s part of my income. I use it for certain
things for the family, we put it towards vacations. My wife and I will sit down, ’cause she has an account as well, and we’ll say let’s
just use this money for our winter vacation, and we’ll just take this
out for Christmas gifts, and then after the New
Year, we’ll roll this out, or I’ll take some of this profit out and I’ll put it into my Roth IRA. So that’s probably the biggest one. I take my profits out to
keep my Roth IRA updated whenever I can add add funds
to my Roth IRA, I do that. That’s always been great, that’s the best. – Two things about your
wife and your wedding. Your wife, before you met
here, didn’t know anything about the, well, she had taken a course or gone somewhere, right? – She saw what I was doing. She signed up for some course online and, my wife is really smart, she’s
a business woman herself, so she was more fascinated by it, but she was definitely hooked. When I showed her what we were doing, and she opened up an account, she was like, here, I just
put some money in there, and then she called me on the phone. She’s like, I just got this email. I go, what was it for? She’s like, I got an option to sign? – It was a covered call. – It was a covered call
that got exercised. I go, yeah, and I explained it, and she’s like, well, that’s 14%. I’m like, yeah it was. – That’s what we do baby! – And that was it. So yeah, she went online
and found something else. She likes to take things on her own way and figure it out, and she did. She just thought it was, it
was the same playing field. Stocks can go up, down, or stay the same. So she’s getting the same
mantra from different stuff that she was looking online herself. And she was like, wow, okay. It wasn’t like one person was doing this, it was all the same language, so that was really easy
for her to understand. Yeah, that was really important for her to really understand it. At our wedding– – Wait a minute, before
we get to your wedding, most people know I live half
in New York, half in L.A., and there’s this trade,
you guys were sure, I don’t remember what it was. There was some extra thing
that popped up at the wedding. You were trading, we
had talked on the phone about this particular trade, and I’m about to fly back to L.A., I get you on the phone,
and it’s an auto stock, I won’t say the name of it. I don’t like it for trading,
it’s a little high risk, you happen to really love it. You do this thing on this stock, the next day you are out with some, I don’t know if it was an
option trade or what it was. – It was a volatility trade, and I wasn’t touching it because
we weren’t discussing auto. I mean, we tapped into it,
but not in what we were focused on was our group. Not that our group
trades are all the same, but we all have a good team
that we all support each other, so we’re on the same page as everything, with good and bad stuff. We just, conversation. This was not it. But I was, now, years into this with you, I’d say it’s like four years, so being more confident,
and we discussed this, and I was like, why do
you not think this good? ‘Cause this is all the
components that we talked about. – It’s too much risk for me. – We’re volatility ’cause
this is meeting all of our criteria for what we’ve been
learning all these years, how come we’re not dipping into this? You had your opinion, and
if I was starting out, I probably would’ve been
like, yeah, you got it, but I didn’t. So as we say in our group,
I went off the reservation. – You did ’cause you’re a wild cowboy. – And we had a situation
in my wedding coming up that we needed this thing. My wife, I actually
remember her saying to me, wouldn’t it be great if we could just, I go, take it easy, it’s not the lottery. (laughter) – Right, exactly. – You know, yeah, in a perfect world, and I said, but you know what? And I started talking to
her about this auto stock, and I said boom, let’s jump in. She’s like, okay this amount
in and you put this amount in, which is 10 grand, and I’m
like, great let’s do it. Put it in on a Monday, by Friday– – I remember. – It doubled. – And so I got this text
this stock went up this much, and I’m about to fly back
to L.A. and I’m like what? And it was almost the exact amount that you happened to be short for whatever this
unexpected thing happened. – Right, it was like $14,000. It was an exact amount,
and I remember too, remember we talked about earlier that you can program the software, so I was like, if it goes
this high, go ahead and– – [Tyrone] Sell me out. – And I forgot to do it. – That’s what it was, you forgot to, we call it a trade trigger, you forgot to put the trade trigger on. – I forgot to put my trigger
in ’cause I was so busy. My wife was doing this
thing with her stuff, and she was like, you go handle the food, and I had an olive oil
business so I was handling all the food, and I was food tasting, and I wanted my products in the food, so there was definitely
a lot of stuff going on. With all the kids and
tuxedos and all the boys and everything else, and I forgot. And I remember forgetting,
and I’m sitting at my computer realizing I forgot, and it’s the weekend. Can’t do anything, you know. I mean, you can do, but
nothing’s gonna, markets closed. So I felt like, let me wait ’till Monday then I’ll just throw it in there, so that Friday came around, so I saw it was on a Friday, and then on Monday it popped again, and then I waited and I set that trigger. Usually that dollar move
that we talked about, and I did it, and I set if for a $5 move. Which in our class,
anybody who knows is like, what are you doing? It would cause dissension
in the ranks, but I knew. – You already had profit locked in, so. – But I had profit locked in, and so, I had enough gap of time, a
cushion, that if it didn’t, I’d still have the same amount of money. Now, as we talk, I was
getting a little bit greedy. – Yes, a little? – Unheard of.
– Right. (chuckles) – And sure enough, it went,
and I got triggered out. I couldn’t believe it. – It was so funny that, we don’t gamble, we use discipline in the stock market, but it was so interesting that
the number that you needed for whatever happened, almost
matched that particular trade. – Almost matched it, yeah, completely. – And so, when I was at your wedding, I thought, you know, that
was great, and I was here, and you introduced me
in front of everybody and said, this is the
best guy in the world, at the wedding, right? – I did, right. – [Tyrone] No you didn’t. – You had your own spotlight.
– You did not introduce me at all, I was just another
guy in the crowd. (laughs) But you know what, I’m
happy that it worked out. – It did, it was amazing. – And two things: why do
you think people when they start to learn The
Wealthy Investor system, why do you think they never
want to touch the profit? I know a lot of people
go, no it’s for some day. I mean, you’re earning
that money right now. – Well, it’s a great question because you talk about that too. I think people are just so amazed by it because it is, it’s a whole new feeling, it’s a whole new way of thinking really. It’s a whole new way of
thinking financially now, and now they’re at this level where some people really get into it, and they wanna just expand it
and see how far they can go, which is still keeping to the
discipline of what we learned, but a lot of people like seeing it. – You mean like seeing
their account value grow? – They like seeing the account. I mean, my, we can talk
here, it’s my first year, I remember my accountant calling me going, wow, you made over a $100,000 in trading. I was like, really? The numbers were right there, and I didn’t take any profit, and that was my thing for this first year. – Meaning you left your
money in the account? – I left it all in there, yeah. I just kept going and going and going until my accountant called me, and she was like, you know you just made just over 100,000 in profit? And I saw the numbers and I was like, wow. So it’s a good feeling to have and I think people
really like that feeling. And they get afraid, I think, that they start dipping in and they start to see it dwindling, but then you get past that. – Yes, with maturity. – With maturity and more education. And, as I am, we started
out with covered calls, we’ve matured into other things. Not a lot, but we’ve moved
forward little by little as everybody would, as you get financially educated about it, and so you see that, I
remember dipping into that and wow, now it’s 20% past that number that I was usually at. – I’m just always concerned as the teacher because deprivation is also a mindset. So it is possible to
have financial security and still inside feel poor or broke, and that’s one of the processes
I try to move people past. This money’s not going away,
you can trade next week, you can earn more. – Yeah, people think it’s
like the bubble’s gonna pop, and so people say that to me too, like, well it’s not gonna last forever. Well, nothing’s gonna last forever. I mean, read the news. There are big firms that have gone under. Enron, look, it happens. – But what I try to explain to people is the stock market was here long before you came to this planet, and it’ll be here when you’re gone, – Long, yeah. – But if you’re never
taught wealth building, there’s this feeling of I’m
doing this thing that is good that’s somehow gonna go
away ’cause it’s money, and it’s too good to believe. Hey listen, let me, uh, first
of all you gotta come back. – Yeah, absolutely sure. – There’s a lot that we can talk about. There’s someone watching right now, and this show’s seen all over the world, who’s saying yeah,
that’s good for this guy, maybe he’s been lucky for 15 years. Let’s go with that. And then there’s also someone who’s going, I’d like to do this maybe. It sounds interesting but I’m afraid. What would you say to those two people? – It’s not luck. I haven’t been lucky,
I’ve just been educated, and I continue to educate
myself, and it’s easy. The other person, just start
off, you don’t need a lot. We talked earlier about going online, and I started thinking to myself, laughing in my head
going, well, it’s free. – To open an account. – You don’t even need any money. I mean, there are some
sites that let you practice. – [Tyrone] Yeah, paper trading. – Paper trading. It can’t be any easier for you to do it. It’s just about learning,
going slow, and studying your way of doing it. And the key word we’ve
mentioned many times before is discipline. – Yes, very much so. – Keeping to discipline,
that’s what it is. So people ask me how did you start? I would say well, I decided
to start with $5,000, and I decided that all my
residual checks that would come in from commercials and
voiceovers and TV and stuff, that would be my money
going into the market. I didn’t want anything I made, so if I did something new,
that was for my family, my mortgage, stuff like that, but anything that got residual income, let’s put that in my market. That’s how I started, I
put that in the market. So you have to have a starting point. We both know people who
have started with $500. – [Tyrone] Yeah, for sure. – And that’s it, so you just start. The biggest thing is just
open up an account and start, and that’s the hardest thing to do, but you have to just get past that fear that, you’re right– – That you’re gonna lose it all. – You gotta start in educating yourself. – That fear is there because you don’t have
a financial education. Imagine what would happen if
you actually learned the term and the language of the stock market. Final question before we go, just general advice for
anybody who may be hesitant about learning how to invest their money, two words, you would say what? – Oh wow, two word, I mean, call you. (laughter) – Thank you! I would say don’t wait. – Don’t wait, right. – Because our market is
constantly going higher– – Three words, have no fear. Don’t wait, have no fear, honestly. That’s really what it is, take that step to really have no fear because there’s nothing to be fearful of. All you’re gonna do is learn, and if you don’t like
it, you don’t like it. But you’re gonna love it because you’re gonna see positive results. I think people need to
understand that fear thing is like, this has to be part of your life, you have to accept it. People ask me, oh, another thing. I go, another thing of what? This is apart of my everyday life, simple. – Very nicely said. We’re gonna leave it there. You’re gonna come back, and when we do our shows
on options trading, you’ll come back and be part of the panel. – More fun.
– More fun, right? – More fun, yeah. – Thank you for being here Randy. – Thanks so much Tyrone. – You’re a real live human being. – I am. – And an inspiration at the same time, so I have to thank you for that. – You got it. – Hey, this is Tyrone
Jackson, The Wealthy Investor, saying hopefully you got
a little bit of an idea, and a little taste of the
power of a financial education. Now, if you like this show, make sure you click subscribe
on the subscribe button, and every time we have a new episode of The Wealthy Investor
TV, you’ll be notified because I’ll be here looking for you. This is Tyrone Jackson, The
Wealthy Investor, saying thank you for being with us, and remember a financial education is
the key to success in life. I’ll see you next time. Hey, it’s Tyrone Jackson,
The Wealthy Investor, and I know something about you. You’re always wondering
what stocks should you trade and what stocks should you invest in. That’s why you can follow my trades every single week at witradeschool.com. You see, at witradeschool.com
I help people just like you make money in the stock market, whether the market goes up,
goes down, or stay the same. And one of the benefits of
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questions every single week in my video blog. Now, the best thing about WI Trade School, you have access to it 24 hours a day as long as you have an
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  1. Brian Williams says:


  2. The Freshman says:

    cover calls?

  3. Darius Mitchell says:

    Thank you for all the knowledge Tyrone. Future millionaire in the making.

  4. dionne king says:


  5. Sherri says:

    this was fantastic . Thank you

  6. GT 4real says:

    I only have 1,000 give me steps 1 thru 10 please

  7. joe morrow says:

    Hi do you have an one on one coaching program? Thanks

  8. Midnight Rider says:

    He was about to ROAST his investor buddy until Tyrone stopped him haha

  9. hammered hemi says:

    Tyrone thanks so much. I have subscribed and will continue learning. I have downloaded a trading app which lets you practice so far its been hit and miss but I will continue watching and learning. thank you.

  10. Daniel D. Eyre says:

    Sign up for his program and stop asking questions.

  11. Plannin’ Lemons says:


  12. Boo Buster says:

    Is that my guy from lean on me?

  13. ezmiket says:

    you better call Tyrone

  14. Vivian Phu says:



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