Revealing My Portfolio Failure

hey everyone weekend here in this video

i'm going to be very specific and

transparent with you about

two big failures one a failure to

communicate my strategy appropriately

for those of you following me on youtube

and we're going to

correctly explain my strategy for

investing in real estate and stocks

right now in this video and in doing so

i'm also going to show you my portfolio

well at least my the overviews of my

portfolios

so you kind of have a breakdown of where

my money is and i'll explain why

then i'm also going to explain how i

screwed up a trade

today what i did wrong and what i

learned from screwing up that trade

so you're going to get how i failed and

transparency

in this video which i always owe you and

i

always desire to provide to you in a

clear and concise way

so let's get started first this is my

jpmorgan account

jpmorgan we've got 12.28 million dollars

in stocks here i have zero options

positions in those stocks

those stocks are things like apple

amazon etsy

and face tesla you name it my big

main core holdings are right here so you

can write down that's 12.28

million dollars you can see uh there's

cash

and then there's some liabilities 390

000 in uh credit lines i got to use some

of the cash and pay off

that credit line and then i have no

margin okay

over here this is weeble on weibull

you could see that i have three million

dollars in options

1.22 million dollars in stocks 189 000

in cash and then some miscellaneous

other numbers and facts over here

whatever

but that works out to a value of what is

that four point

two plus two so somewhere around four

point four

million dollars in that account okay now

let's go the other way

here's m1 finance this is the day return

looks like i lost 3

600 on the day that is 1.061

in m1 finance that's just shares no

options here

and then here's robinhood which lost

about 1.69

today this is about 50 50 options and

shares

and that's two point one four four point

four million

or two point one four four four four

anyway uh that works out to a portfolio

value in the stock market of

19.8854 million dollars if if you add

that up

so that's what's in

the portfolio right now all right so we

got that out of the way

now what we're going to do is we're

going to explain where did this money

come from

and what is my strategy and what has my

strategy been and why are some folks

confused

thinking i've changed my strategy first

of all

it's very important to realize that

you're an idiot if you don't change your

strategy when the market wins

change now i don't change my strategies

often in fact a lot of my strategies

recently where people like oh wait kevin

you said don't do options now you're

saying options that's a misunderstanding

of what's going on

i'll tell you up front here i said don't

buy calls

sell puts okay that's like the same

suggestion not financial advice don't

sue me bro if you lose money it's your

fault right

but there's some there's been some

recent confusion where people just

aren't paying attention i think

and i just want to make that very clear

but you have to

modify your strategy over time and i'm

sorry if it sounds blunt to say

it'd be stupid not to change your

strategy or somebody would be an idiot

not to change your strategy

you've got to change your strategy when

the market gives you different

opportunities you change your strategy

i don't change my strategy that much and

you're going to see that

by going through this with me take a

look at this so this right here is my

ipad

we're going to go through this really

quick and it's worth watching because

you're going to see

where money comes from and how i built

my wealth over this last

year and three months here march 6 i did

not have

a whole lot of money in stocks i had a

good portfolio in stocks but not a lot

of money in stocks

and one of the ways that i made a lot a

lot a lot a lot of money

was on march 6 i called up my lender

when the federal reserve panic

dropped interest rates and i said

refinance all of my properties four now

then four and then other properties

refinance everything we've got as soon

as possible because i think there is

going to be a massive rush of people

trying to refinance their properties

really quick

i was in the door closing my refinance

while other people were panicking and

the market was crashing

i took that money i threw it into stocks

i did really well on all those stock

purchases

buying redfin at ten dollars buying

tesla you know

350 to 400 pre-split i mean come on

these are

huge huge huge changes and so yeah

those that was really lucky timing that

exploded

my portfolio being able to have my real

estate

like a piggy bank smashing that piggy

bank

taking all the cash and dumping it into

the stock market at the bottom of the

market

was really convenient timing okay

it is what it is yeah a lot of money

came from that and i'm very happy about

that

okay and hopefully you are too but

anyway uh between may

and august i decided to buy real estate

and these are like my

actions okay look this hey it did great

was the bottom of the stock market in

fact we'll make the screen here this was

great

bottom market refinancing here great

bottom of the

bottom of the real estate market right

here well not really bottom of the

market it was just lower price then

right

refinance took money through it in the

stocks may through august i buy 10

properties great

real estate started exploding in value

between september and june of this year

so september of last year in june of

this year okay those were

lucky purchases i did a crap load of

buying yesterday or last year because of

all the panic and fear

in august i started paying down my

margin that was a good decision

but i was too slow and in september

when we had a tech sell-off i sold

a little bit more unfortunately in a red

market

to continue to pay down margin that was

not

great timing so far really good timing

here

but you're not perfect so i did sell a

little bit in september

uh when there was pain in the market and

i wish i didn't

but i paid down margin between october

actually right before the election oh i

gotta put this in you might remember

this in fact comment down below if you

remember this

right before the election i went

ham uh buying right before the election

and that's because i thought that no

matter who won the election there was so

much

fear that the market was going to crash

if biden got in or the market was going

to crash if trump got in

i didn't care there was so much fear i

loaded

the boat with stocks at the end of

october i bought

bot bot bot that was a really good

decision

because the stock market did really well

after october things did um

everything did amazingly in november and

december and january

in december and january i started

feeling like i had a little bit too much

stock exposure again and too much margin

and so i said that i was going on a

stock diet

that i would buy less stocks of course i

have a problem not buying stocks

and i didn't really follow my advice as

well as i should have

so i'm going to put yellow there my

intention was correct

i kind of still nibbled on stocks

because i have this problem where money

burns a hole in my pocket and i just

have to keep buying stocks

uh i did also buy crypto in january on

january

6th uh 5th and 6th i bought crypto

and on that day on january 6th i said i

would probably

sell crypto either march 12th

or may 13th keep those dates in mind

early february i sell about one and a

half million dollars worth of stock

because i wanted to reduce margin this

was a

very good idea because literally

in mid february the stock market started

falling

a lot and i went on a buying spree again

i bought the dip

like crazy february to april

if anything this is probably like a half

pink and half green i'll make the feb

pink

because i bought the dip very early and

the stock

stock market kept falling so this was

like half pink

half green where it's like half good

move half bad move in fact we could

probably just you know

it'd be easier to just do kind of like

buy the dip heavy kind of

kind of make it like that like half

green half pink okay because

again the intention of buying the dip

very very good but

the dip kept dipping okay it was a

problem uh

then on 4 20 i decided

i i'm very exposed on margin i don't

like it

what if the market crashes more

and so i decided to go heavy on call

options

for a september october rally and i

would

sell stocks to close my margin folks i

sold

about 9 million dollars worth of stocks

that's a lot now this strategy

ended up being mostly good with the

exception of tesla

tesla has done very crappily since 420

and i bought a lot of options in tesla i

didn't diversify very well with my tesla

options

and so my tesla options are bleeding

they are hurting it's down a chunk

okay now uh and i try not to look

because i'm sad about my tesla options

but that's okay my tesla stock is up

like

six million dollars my tesla options are

down like 800 grand

okay it's a lot like my tesla options

are bleeding but i'm just diamond

handing them right now because i have

high faith in tesla

and they've had like four months of fun

so i think that fud is going to u-turn

so i'm being very consistent with my

strategy

but i did go to calls i went to

75 uh option i'm sorry

75 shares shares

uh and then i went to 25 options okay

you get the idea i don't really have to

draw it out 75

shares 25 options that has become a

very clear strategy for me so yeah on

420

i shifted my strategy i went from buying

the dip with margin

to buying the dip with call options

which give me a leveraged opportunity on

the market

as long as the market does well right so

i did shift my strategy on 420. i also

sold a bunch of crypto on 420 i did not

sell on 412 like i said i would i sold a

week later

on 4 20. oh well my fault

whatever i still sold my crypto then uh

so this i would say is mostly green

because it meant i sold bitcoin at like

five thousand dollars okay if had i had

i listened to myself and sold on 412 i

would have sold it at like 64 000

anyway then in may and this was what i

was fearful of i was

fearful that there would be another dip

remember how i said i'm gonna get rid of

marge i'm gonna get rid of all my margin

because what if there's a deeper dip

well folks that deeper dip

came and it was may may 14th

to may 14th i spent one and a half

million dollars

briefly going back into margin to load

up on

shares i just bought a bunch of options

on 420 so i put one and a half million

dollars approximately into the market

between the 12th

uh and the 14th of may those shares

are doing really well right now most of

those stocks

things like neo end phase etsy whatever

you look back at march 12th to march

14th it was literally the rock bottom of

the market

and right now i have zero margin which

i'm very happy about because if the

market crashes again

i could use some of my margin okay good

now that was a very good move now in

june i started

nibbling on crypto i'm gonna say this is

neutral because we've

kind of been trading sideways i also

stopped buying

calls so in june i started nibbling on

crypto

to get back into crypto so that's going

to be like my ada position

my ada position i'm up on my ada

position 88 cardano

and i plan to keep nibbling i'm not in a

massive hurry to keep buying crypto

because i think year the 2022 is going

to be the year of crypto

then in july i just that's now

i decide okay keep this mind in june i

say stop

buying calls don't buy calls

why would i say stop buying calls i say

that because

the market is slowing okay this is

really important

the market is slowing down the economy

is not going to grow as fast as people

think it is

so when the economy slows down and you

keep buying call options

you're exposing yourself to expensive

theta decay

now i have also closed

some of my call positions that have

already caught had what i call

a euphoric rally and that's going to be

ghvi

and cciv i sold these at

17 and about 30 dollars

now i plan to hold shares in ghvei

and cciv long term and the way i'm doing

that

is i'm backing into these companies

these shares

by selling puts but i want to talk about

real estate as well in a moment okay to

properly understand

options it's important to know that

buying call options which i said i don't

want to do anymore

do very well when you go to the moon

quickly like when you're expecting

stocks to go up

quickly some stocks i don't expect to go

to the moon quickly

and so that's why instead i'm selling

puts on those

it makes sense and if you understand

options this makes sense

i also just posted a 32-minute lecture

in the stocks in psychology of money

group at the bottom of the curriculum

adding new lectures which i always add

new content totally for free which you

get to take advantage of if you join the

programs link down below use that coupon

code expiring on the 22nd

okay now what about real estate

so real estate is interesting so real

estate i've mostly with the exception of

one property that i added in the last

couple months

i have four properties in development

with architects

but beyond that i have mostly stopped

buying real estate

i actually think that real estate has

some risk

factors right now i see inventory

uh potentially backing up soon

i think that we are seeing new listings

come on the market

at a regular pace but less of them are

selling

quickly and that's because asking prices

have gotten so

ridiculous so i've stopped buying real

estate

now i might consider buying real estate

if i come upon a deal that i think is

priced

improperly so if i think something is a

really good wedge deal and something is

mispriced

then i will buy it but i've mostly

stopped buying real estate

okay now going forward august

through december and then i want to talk

about the trading mistake

august through december i expect all

stocks to potentially grow

slower to grow slower than we expect

them to grow

now i'm not closing down the call

options i have

because i still believe that there is

going to be a period

of what i call euphoria i think

each of the call options i have will at

some point experience

a rally between now and the end of the

year when that comes

i'm going to dump my call options and

i'm going to either sell

puts or i'm going to just straight up by

the shares

that's a very consistent strategy and

this is what i

said i would do on 420. i said i would

buy the calls

i wouldn't hold them forever when they

rally and they make me lots of money

i'll sell them and i'll buy shares

that's a plan

it's not a guarantee it's a plan and i

still believe we could see that

especially when we see a downward

inflection

in inflation which i believe the market

will more broadly realize in september

and october

but i do believe the market will grow

more slowly between august and december

2022 is going to have an issue because

in 2022 we're going to start comparing

to 2021 comps and growth rates and i

think

growth at companies is actually going to

potentially be negative

this is why i've called weeks ago i

started talking about this we started

talking about this two or three weeks

ago

that oh my gosh you realize when apple

does 30

increases in ipad or iphone or mac sales

or whatever

next year even if the numbers are still

great

like you sell i don't know let's just

make a quick example

let's say consistently you've been

selling 5 000 uh

ipads okay for whatever you're selling

5000 ipads

and then the next year you're selling

10k ipads

and you've consistently been selling 5k

or you've been selling a tiny little bit

more

and then the next year you sell 9k this

is still

way bigger than this but it's actually

negative growth from the prior year

right

it's really potentially bad so but

and i think that's going to be true for

all companies whether it's travel retail

anything consumer related i think uh

again

retail hospitality restaurants travel

consumer products apple

tesla whatever everything i think

comparing

to 2021 is is going to be a little soft

potentially a little bit soft but that

doesn't mean i'm going to

sell out of the stock market i'm still

willing to be in tech

and i'm going to stay in tech because i

think of the pain we might see in 2022

tech will do the best and the reason i'm

going to be in tech or the way that i'm

going to be in tech

is not with options i want to go into 22

ideally with no options

so in other words in the next six months

i want to work to close my options

i take tennessee standing standing these

ten attendees some things

i don't know we'll see how it goes but i

could change my strategy on like so fire

cciv

if they start running and i have a

profit and i i decide to close the

options then i decide to close the

options if i feel like they're going to

run then i'm going to close the options

i'm not going to sit there like a num

nom and just pretend

and stick my head in the sand do nothing

if i think it's going to keep trading

sideways then i'll just keep holding it

and milking the theta decay very clear

strategy okay uh then i do also believe

that crypto is going to do well in 2022

because we're gonna have much better

regulation i don't think we're gonna get

etfs until 2022.

okay good there you'll go now we got to

talk about my failure on amc

i made a num num stupid stupid stupid

mistake this morning okay

it was so dumb but i want you to learn

from this okay

so the market opened this morning and it

opened

down and it was gonna and we started

seeing it trend up

and i'm like oh the market's starting to

trend up the perfect thing to do

at a bottom is to sell puts sell puts

right here

sell puts would be the perfect thing to

do here

and i did that i sold three puts

square and a couple other companies

the problem is i was so in the mood of

making decisions

that i didn't logically

fact check myself by saying wait a

minute you sell puts at the bottom which

we're doing

you sell calls at a top the time to sell

calls

is at a top not at the bottom but i was

an idiot

and i accidentally sold a call on amc

at the bottom at the same time i sold my

puts

that was stupid like logically i know

not to do that

i screwed up there was also a huge red

flag and that when i put my soul of my

cell call in

for amc i i put my cell call in for amc

jeez i put my cell call in for amc and

the order wouldn't execute

it was like the perfect red flag like

you idiot don't do this

i didn't listen emotion got a hold of me

i screwed up

and so when amc started running i closed

my sold call

i'd lost four thousand three hundred

dollars

net net closing out the really good

decisions i made with these puts

and the bad decision that i made with

the call

sold call so i lost four thousand three

hundred dollars on on a trade

so that'll be on our uh uh our trade um

log because i show you my losses and my

wins

uh in fact if you haven't seen that

video yet you could uh

it's it's a good one let's see here uh

meet kevin revealing

uh about my trades here we go

so there we go watch this video if you

have not seen this video yet

it's right here revealing the truth

about my stock trades

uh it's right here meet kevin revealing

the truth about my stock trades and it

goes through the portfolio with you

all right so

those are truths and failures and

reality

i'm also giving you my plan if the plan

changes

i will let you know that it's changing

because that's what i do

i let you know and i keep you updated

but in my opinion

when i see some comments from folks on

oh my gosh you said last week don't buy

options now you're doing options

you're misunderstanding what's going on

like to me my plan what we've done here

has been a very consistent progression

a very very consistent progression of

building wealth

it makes it made sense to buy the dip

last year it made sense to buy real

estate last year

it made sense to pay down margin it made

sense to buy crypto and it made

sense to sell crypto in my opinion now

and we won't know yet a lot of the co at

the top we can look back in hindsight

and go yeah that was a good decision

that was a bad decision right

but now it's it's uncertain we don't

know yet what's going to happen

i'm just making guesses uh your guess is

really as good as mine i just do this

every day and so i hope i'm right

that's it if you lose money it's your

fault

but anyway hopefully you appreciate this

transparency check out the program's

link down below and folks we'll see in

the next video thanks so much

[Music]

you