My 60 Day Strategy to BUY the DIP: Crypto & Stocks.

hey everyone me kevin here boy oh boy it

has been a spectacular last 24 hours and

to help with the last 24 hours i got

myself an emotional support uh well the

closest thing i could get to a paper

mario which is uh

paper slash foil mario

so i've got an emotional support animal

here he's got a nose as big as a clown

so i think it's pretty appropriate

anyway it's kind of cool because he uh

he self writes himself uh so when i

throw him he still stands up which is

kind of cool he's got a little weights

on him anyway in this video we're going

to talk about strategies moving forward

because obviously a lot has been made

about me selling and i think folks are

tunnel visioning the fact that i'm only

selling to set myself up to buy the dip

more aggressively because see i believe

the more the market dips and i do

believe that the market has more to dip

the better opportunities i can get the

problem is

when you are restrained by capital in

tight markets you got to do everything

you can to maximize your ability to buy

the biggest stamp with either options or

just straight trades that you can and

that's what we're going to talk about in

this video about how to maximize some of

these things

okay so let's go ahead and talk about

this we'll also talk about futures

because we've got a little bit of green

and futures right now i'm going to talk

about my expectations for futures uh so

let's go ahead and get right into this

so the first thing that i'm going to

talk about is uh step one and this is

sort of like a five-part video step one

is going to be refinancing now what i

like to do when markets get tough

because when markets are good i have a

rule i don't refinance my properties i

generally don't like refinancing at all

and see in my stocks and psychology

money group and in my real estate

investing courses we always talk about

real estate is your piggy bank for a

tough market i've currently built up

over five million dollars in excess

equity over the last two years in real

estate now i don't try to time interest

rates on real estate although it would

have been nice to refinance last year at

lower rates i usually don't even

remotely think about refinancing my real

estate unless the market's going to crap

and so i've got about 5 million plus

maybe 5.2 million that i could draw out

of real estate and if i do activate

those refinances now i should get that

cash by the first week of march

which if my timing is correct and we end

up at peak fear before the first rate

liftoff of march 16th i'll be able to

plow an additional 5.2 million dollars

into the market which means i'll be able

to take an additional 25 of my overall

portfolio throwing it and throw it into

the market at a time that i think will

probably have peak fear in the meantime

between now and then we're going to have

a lot of this vacillation so i'm not

going to get head faked by this

vacillation because we've seen this sort

of isolation for the last eight weeks

remember folks the most difficult thing

in a bear market is raising capital so

cutting away expenses is one thing

making more money is one thing but if

you have a piggy bank that you can go to

and it can bail you out of margin which

i'm not in margin obviously at this

point or you can go to a piggy bank so

that way you have more money when you

need it close to ideally the bottom

market that's ideal why do i say this is

one of my favorite moves because in

march

on march 3rd of 2020 i activated a ton

of refinances i refinanced somewhere

around 10 properties in the span of two

months and i got a boatload of money

somewhere around at that point two to

three million dollars and those original

investments 4 to 5x if not even more

they carried investment returns for a

very long period of time so i want to

get max cash that i can for when i think

we get to max fear i don't know if we've

hit max fear just yet i was hoping and

i've been hoping that we've hit max fear

last week and to some degree maybe but i

don't know if jay pal is going to help

us

get rid of any of our fears so we'll see

but i talked a lot about that on

saturday okay the second thing to do in

my opinion maximizing credit lines so

that way you're not exposed to margin

and see that's one of the beautiful

things about mortgages or credit lines

is they are different you don't have

margin calls on credit lines or

mortgages like you do on margin so i

like staying away from that kind of debt

or consumer debt and focusing on sorts

of credit lines i think that's really

where the juice is so if you're a

business owner or you own your own home

you might consider requesting to expand

your lines of credit with banks banks

are generally quite interested in

expanding lending right now so while not

all banks may be accommodative i believe

you'll find one that will be

accommodative so what i would do is i

would ask for a home equity line of

credit against your home or a business

line of credit against your business

income home equity lines of credit are

known as helocs and certain credit

unions not all the big banks will let

you pull out up to 80 to 90 percent of

the value against your property if you

find a a credit union that lets you go

up to 90 this means if your home is

worth 500 000

and you owe 300 000 on it you could get

a credit line while still maintaining

your first for a hundred and sixty

thousand dollars against your home

that's amazing against your business you

could usually get a credit line for

somewhere between 10 to 20

of your gross business revenues extended

to his line of credit so let's say

you're a real estate agent and you make

400 000 gross you might get a credit

line of 40k let's say you're all and i

know this sounds a little skewed because

the profit margin on that might be like

90 on that business right but now let's

say you're a wholesaler and you have

five million dollars of gross revenues

but you only net let's say 4.5 mil so

you're netting 500k on 500 mil right

there they might actually are on on five

mil they might actually let you take ten

percent of that five mil or 500 k out as

a credit line so like when it comes to

these credit lines they often don't care

so much about your profit margin they

care about that gross revenue so for

individuals with gross revenue

businesses that are more elevated those

business lines of credits are usually

going to be a little bit more desirable

and of course rates and terms may vary

but these lines are usually variable and

uh they can take basically you could

take money in and out of them like you

can on a credit card except the interest

rate is way lower it's usually between

three and five percent and uh generally

you can take money in and out for the

first 10 years you kind of write a check

in and out of it uh and then after 10

years whatever balance you have left is

usually locked the account is closed and

then you're required to pay that off

amortized fully amortized over 20 years

that's when you start paying principal

and interest otherwise you just pay

interest before so those those are some

cool things to consider as well now uh

let's also touch now based on on sort of

uh trade strategies right and i've been

actively

working on these and coming up with

plans and strategies for these with

those close to me and here's some

expectations so i expect the market to

change extremely quickly in my opinion

all eyes are on the fed the first big

date is january 25th and the next big

date is march 16th it really in my

opinion doesn't matter what news comes

out in between because we could end up

having good news and still end up with a

hawkish powell or hawkish fed board and

i do think that political influence is

involved so we have to be somewhat

careful about this but knowing january

25th and march 16th is just one part of

the problem you've got to have an

executable plan to maximize your returns

in my opinion because if you end up

seeing oh wow okay it seems like we're

getting good news from the fed what

should i do now and then you have to

come up with a plan you might end up

missing the boat so you don't want to

miss the boat if you're trading remember

trading is different from long run

investing and i think that's so critical

and a lot of people forget that that

it's it's okay

to to trade if you know you're a trader

and you're going to pay taxes on those

gains if you want to be a diamond hand

hodler that's totally okay if you want

to divide your portfolio 50 50 or 80 20

you could do that too but you have your

right to change your mind with what you

want to do with your portfolio and

nobody should ever tell you otherwise

now

let's go through this so i can buy small

caps for example now with money that

originally i had invested in apple

because see i don't particularly believe

the upside for apple is huge what's

apple going to do over the next year 10

20 30

i personally don't think it's going to

double i think it would be lucky to do a

10 20 30 over the next year or two that

would be amazing if apple did that

because i do consider apple a relatively

safe stock

but now because i sold my apple stock

and i washed some of the gains that i

had with apple with other stocks and i

sold profitably i will be paying taxes

what i can do is i now have this money

unlocked to be able to trade without

fear of taxes into and out of small caps

that in my opinion are desperately

oversold and are setting up for a short

squeeze these are the traditional ones

the shift technologies the lemonade the

tattooed chef even the matter ports or

the robin hoods or the arrival right

these are great companies that have been

so oversold because they just have

continued to go down and so now because

i've liquidated my portfolio in most

areas i have more cash available to be

able to take advantage of these swings

because i think some of these small caps

have the potential to four to eight x uh

their valuations which is kind of insane

and is substantially worth paying taxes

on if you can hit this correctly the

problem is getting head faked and

getting fake bounces and we'll talk

about that in just a moment we'll pull

this up and i'll talk exactly about what

a head fake looks like in the market

or or a bull trap and how we're going to

try to identify when are we actually

really going to turn around in this

market and that's difficult to identify

but we'll do our best to do so okay so

uh some of the things obviously on longs

i think it's really good to have uh

buckets uh of longs

and the buckets of longs that i've been

playing in

are of course ev where we've got tesla

as a main holder autonomous tech

honestly tesla is one of the best for

autonomous tech uh chips and metaverse

of course nvidia matterport some of our

faves green energy of course enphase

consumer discretionary even stocks and

you want to start paying attention to

some of these home depots down 15

percent from all-time high uh target is

ultimate highs target is down 16.7 from

all-time highs obviously your consumer

discretionary is like etsy and a firm

that you want to be careful with the

firm because if we go into a recession

you want to stay away from a firm uh

consumer staples uh well staples would

be more like your your probably uh your

cost goes and your target actually

rather than a discretionary that depends

what you're buying there but anyway uh

those are some to pay attention to as

well maybe even sherwin-williams in that

uh but personally uh i still love my

faves that i've always loved again the

etsy affirm the end phase the tesla

these are sort of the core ones that uh

i'm strategizing on how to get in uh and

so there are a few ways that i can set

myself up to get into my longs obviously

i could just buy the shares on a lower

dip that is an easy option in addition

to just buying the shares on on a dip

and this is probably the direction i'm

going to go i i can sell puts because i

think we've got about a 50-day window

here where we're going to be trading

downwards and sideways i don't really

think that we're going to have massive

rallies that are going to last i think

we're going to have head fake rallies

rallies that come and go really really

quickly

and so what i'm looking for are

opportunities to potentially sell puts

here so that way i can decrease my cost

basis getting into these and ideally i

want to decrease my cost basis more than

the amount of money that i'm paying in

taxes so for example if on average on my

entire portfolio i'm paying about 20 in

taxes or about four million dollars

let's just say as an example washing out

gains losses uh then then i want to make

sure that uh that's a 20 decline i want

to make sure that i can lower my cost

basis in certain stocks ideally by

around 20 and if i could do that with

weekly sell puts farming the credits

that might be an option over the next 50

days probably the worst thing i could do

is just sit for 50 days and do nothing

with my cash

though

you know that's tbd so still working out

the exact details of that obviously

every single move that i make i will be

pointing out in my stocks on psychology

of money group whether whether it's uh

crypto or it is a traditional stock or

it's an option every single trade goes

in the stocks in psychology and money

course so if you're looking for trade

ideas again no guarantees ups or downs

but uh i'm gonna be doing a lot of

trading over the next 50 days probably i

will probably be doing more trading over

the next 50 days than i have in the last

year so if you like trading

check it out

i stare at the charts all day long

that's what i do now some of you may be

unfamiliar with exactly how a sold put

works so let me just give you a very

quick example using end phase so let's

go ahead and jump in here we're going to

drop in end phase what we're going to do

is we're going to see this has gone down

substantially in in value we're going to

jump over here to options

you could go for weeklies which can

sometimes give you a little bit of a

higher rate of return but let's just go

ahead and say i'm going to go for a 33

day on this one i'm going to go for 33

days and let's say i'm willing to buy

end phase at it's currently at 126

dollars so we go for the 125. let's say

i can sell this for 12 dollars a

contract approximately at this this year

or or per uh per share that is since

contract is times 100. so here's what's

going to happen i'm going to pick the

125 strike

february 25th 2022 expiration

sell

put and this is a if you're using a uh a

platform that has the like two open or

two closed phrase what you're looking

for is sell to open because by selling a

put you're giving somebody else the

right to force you to buy shares at 125

so in this case i'm giving somebody else

the right to force me to buy 10

times 100 shares of end phase at a

hundred twenty five dollars that means

i'm agreeing to pay to pay a hundred

twenty five thousand dollars for one

thousand shares of enface

in return i'm going to get a ten

thousand seven hundred fifty credit now

if end face trades above

uh 125 dollars i can either sell the

contract for a profit or i can sell or

just i could literally do nothing i

could keep the 10 000 uh dollar credit

and then the contract expires worthless

and then i keep the ten thousand seven

hundred fifty dollars the only time this

is bad is when prices go down you go

under 125. uh well i'm good until about

115 dollars that's approximately my

break even depending on if i get it for

ten dollars 10 or 75 cents somewhere on

there my break even is going to be

somewhere around 115 114 that's my break

even so it's kind of like i'm buying end

face for a discount

and the cool thing about that is if uh

if it ends up falling to 120 and i get

assigned that's okay because it's really

like i got the shares for 114 or 115

dollars and uh i got forced to to pick

him up while i was at about 120 big deal

uh so i'm still in the money in that

case

gets ugly though when you sell a put and

end face goes from 125 to like 80. in

that case you'd be agreeing to buy

shares for 125 sure you'd have the 11ish

dollar credit but you'd still be upside

down by 34

so there is some risk related to this

and that's why sometimes what people

like to do is they like to go for the

one weeks so that way they limit how

extremely down it can go but they're

still farming that credit because look

at this on one week i'm collecting four

thousand six hundred fifty dollars if i

go to four weeks i'm collecting roughly

twice that so it's four times the time

for only twice the credit so that's why

those weeklies can be really nice

because people are buying weekly puts

speculating so it's kind of like selling

the pickaxe to the gold farmers

right now if i went in here and did 500

of these contracts times 100 shares per

contract

at uh in this case

per the week four dollars and 65 cents i

would get a credit of 232 000 between

now and friday and if end face sold

below 125 by friday i would be

committing to spend

uh

a few million dollars six point two

million dollars which is a lot it's

crazy right i'm using big numbers here

just as an example but still if npace

traded above 125 i could take that 230

thousand dollars thank you very much for

free by friday as long as we're above

125. so these are just some ideas that's

not exactly what i'm planning on doing

this particular one i'd probably go a

little to different prices and ladder

and vertical this out a little bit but

uh to be determined still in the works

just a quick example uh so now what

about shorts okay so i don't love

shorting because i believe when you

short you're betting against train

america you're betting against the

future growth of america so what i'm

looking at is potentially shorting

overvalued momentum which is very very

dangerous you could you could lose your

pants on that so you'll be very very

careful or kind of limit your exposure

here or specific tech stocks that have

not fully sold off yet i specifically

want to do this as potentially an

earnings play on only certain stocks i

hate playing earnings but earnings are

going to be the catalyst on very

specific stocks where i believe i have a

competitive advantage so for example

let's say i'm a consumer or a purchaser

of a certain good and i see something

shady happening at a company and i think

it's going to get reported in earnings

and it's corroborated by potentially

still a high stock price that might be

an opportunity for me to short uh who

knows but in my opinion what you're

trying to do with trading is balance the

scale to where you have an 80 chance of

being right 78 chance of being right 30

chance of being wrong uh in that way you

were right more than you're wrong if i

had those odds in roulette i would be

playing roulette all day long and we

would be doing roulette live streams

every single day

uh so uh one of them just and i've got a

whole list of positions i've got about

five that i'm really considering at

right now one that i will just kind of

throw out there uh and i have not made

any moves on this one yet it's very very

dangerous but i think i think if we get

more pain in the market it's going to be

very very juicy for short potentials

it's dwack uh i i know that sounds like

anti-trump this is not a political move

at all this is just straight up like

okay there's absolutely zero reason a

company

with with its level of development and i

know they've done some fundraising

they've done some good with fundraising

but with this level of development

should be trading for for what it's

trading for it's absolutely the same

calculating the valuations on spax is a

little bit more complicated you can't

just look at what the market cap is on

google because that's based on the

market cap of only the pipe shares

anyway long story short this is like a

10 billion dollar company dwack is worth

more than like robin hood which i mean

maybe some people might actually be

happy about but but from a rational

basis with a company where robin hood's

got seven to eight billion dollars in

the bank and whack is worth more than

robin hood it doesn't make logical sense

right going back to fundamentals here

but anyway uh okay so any trades that i

do end up making obviously i will post

immediately in the stocks and psychology

money group there are some trades that i

may make a video about and then post

them like a day later or whatever i

can't always post them uh the same day

though because it takes time to put

videos together and i do my best to get

polished videos out even though i can

get news videos out very quickly when

they come to my thoughts and putting my

thoughts together alone i try to make

sure i bring out a polished product okay

so uh

next thing i'm gonna also do a lot is uh

my expectation is crypto is going to be

extremely volatile over the next uh the

next 60 days and i do think that there

are going to be trading opportunities in

crypto where we are going to bounce up

and down and break through and break

above over and over and over again

support lines within the crypto space

and so i want to take advantage of those

opportunities when i see them present

probably going to stick with some of the

larger ones and uh that's going to be

like bitcoin ethereum and cardano maybe

even solano just because these are ones

where i feel like i've got the chart

down a little bit better than some of

the others though i'll probably be

expanding to alts as well so i do expect

to get into and out of crypto on almost

a daily basis over the next 50 to 60

days and uh we'll see how it goes it'll

be fun okay the next thing that i'm

going to do is i'm going to uh brokerage

transfer so i'm really tired of using

jpm i can't handle the fact that they

don't let me do pre or post market

trading i have to wait hours for my

margin to become available when i want

to use it sometimes i have to call them

to buy or sell and i can obviously only

do that when they answer the phone and

if the amount is over a certain size

then they can't help me trade and the

bank automatically has some weird limits

set so then they have to like the phone

banker has to send an email to a

different department but everybody's

work from home so it's like this

complete cluster f i absolutely hate it

complete moronic rules uh and rules like

this have cost me tens of thousands of

dollars in lost opportunities because

what like when i make a trade and it

goes down like i'll i'll suck it up like

okay i made a mistake that's fine if i

make a trade and i'm like i want to make

this trade like right now let's go and i

can't do it because somebody else is

standing my way like vlad then i get

pissed that's not fair right that should

happen to nobody and my heart goes out

uh empathetically to uh the robin hood

folks who had this issue uh also td

ameritrade is expecting to offer me some

sort of a special portfolio like lower

margin rate which would be really

amazing jpm's was like 1.25 and if they

can low get lower than that

let's go

okay good so uh now what else what else

so the big thing here is i am going to

do everything that i can over the next

50 to 60 days to make sure that i can

get uh more money raised so that when we

get better pricing i am the person

they're buying i'm a big fan of buy the

dip i just want to do everything i can

to build my portfolio as much as i can

with trades

probably by yield farming credits

because i think that's the safest and

most conservative way to do that and

then that way if i've got a few extra

million dollars i've covered my taxes

boom i get back in at lower prices so

that's my expectation watching futures

very closely so futures are really

interesting right now

nasdaq

futures have shot up from about .66 to

about .94 they ran up to almost one

percent up in futures they pulled right

back down to up about two-thirds so

you're seeing that volatility already

present in the futures market here's my

expectation for tomorrow i believe that

there's a very high likelihood that

we're going to have a green open

tomorrow but i think it's going to be a

little bit of a weenie baby open where

it's kind of just like yay we open green

but then the second half of the day the

traders take advantage of us the

institutions take advantage of us and we

sell out i do think if you are a trader

this is a very very important pattern

that has been consistent for the last

eight weeks that you can take advantage

up also remember the best time to sell

puts is when put prices are higher so if

you do towards the second half of the

day start seeing prices go back down

that's probably going to be the time to

sell your puts rather than the beginning

part of the day where stocks are green

because that's when puts are going to be

less expensive and if you're going to

sell them you want to sell when things

are a little bit more expensive when

prices stock prices start falling your

put prices the credits you're going to

get are going to start going up which is

better keep in mind we're also seeing

volatility go down so there might be

plays on

uh uv xy as an example so this is a

little tricky but just so you know uvxy

is is essentially a ticker that goes up

when volatility goes up so when

volatility

goes up you you can actually make a bet

on this by having call options or just

buying the actual taker right you have

to be careful it's not a one-for-one

correlation with volatility

so you've got to be careful with that a

little bit it maybe do some research on

the actual ticker beyond what we're

going to talk about here in this video

uh but uh there's also the inverse of

this but i personally prefer just take

the uv xy and if you think this is going

to go down like it probably will first

thing in the morning tomorrow in fact

right now we're expecting this to open

up down three percent futures are gonna

open up down three percent at least

that's what futures indicate right now

this isn't actually active right now

yeah uh then this should also go down

you know we'll see roughly three percent

sometimes a little bit more

and uh and there's an opportunity then

if you believe that volatility is going

to go back up second half of the day to

maybe make a bet on this particular one

this is to me like a perfect day in day

out kind of trader stock so uh that's

definitely one to watch okay good so uh

those are my thoughts folks thank you so

very much for watching check out the

programs link down below i'm building

your wealth there's a coupon code that

expires on my birthday which is in five

days you get 100 transparency as soon as

i make trades and folks we'll see in the

next one thanks so much goodbye