Transcription
This is the 10-minute contrarian podcast. This is VP. We are a solutions-based podcast diving into the world of contrarian investing and alternative finance. We are hosted on the No Nonsense Forex YouTube channel, no-nonsense-forex.com, and podcast players everywhere.
Now, one quick programming note. YouTube has gotten rid of automatic captioning. So, if you haven't seen those at the bottom of my podcast episodes and my latest video, this is simply because YouTube has gotten rid of them. It really sucks. I have a very international audience, and the captions help out a lot, but we apologize for the inconvenience. This one was out of our hands.
Now, again, I think I'm going to skip ad reads because we have a lot to go over. This might go down as the most important episode I do, and many of you who have been following me for a while can probably understand why.
Now, in about 10 minutes, I'm going to attempt to explain to you how to get into these stocks in the most optimal way, how to get out, and why, especially here, you really have absolutely no choice but to play the long game. Contrarian investing does not favor people who make impulsive moves. And when it comes to investing, do you know who else never, ever makes impulsive moves? Very, very rich people. The ones who have made their money off of investing. The ones who have already made all of their early mistakes and have realized there is only one true optimal way to do things, and that's long-term buy and hold.
Now, you might be like, "Oh, VP, well, I'm not super, super rich, so I can't afford to do it that way." It doesn't matter. The most optimal way is the most optimal way. That doesn't change based on your situation. I had mentioned this before. I read the book *Rich Dad Poor Dad* about 15 years ago, and when I did, it completely changed the overall trajectory of my life, my thinking, my approach, everything. Even though I really didn't have any money back then, I said to myself, "Look, I am going to do things the way rich people do them and make absolute certain that I do not do things the way poor people do them." And sometimes it just takes somebody to lay all those things out in front of you, and that's what the book did. And so, this is the approach I've taken for the last 15 years, and it has treated me quite well. You know, I'm not super wealthy, but I'm not waiting tables anymore either, and that was always the goal. But without this shift in thinking, I would have never, ever gotten here. Like, never. And it's because, especially when it comes to money, I had learned not to act impulsively. I learned to understand that I'm going to take a ton of losses, and it's just part of the game. And I took a bunch of losses when I back-tested my system too, but I didn't feel them when I back-tested. And just because I'm feeling them right now doesn't mean they're any different than they were before. When it comes to the overall big picture, you absolutely must embrace the long game. And I'm going to tell you right now, it is a fantastic place to be because every day is a good day. Either the markets are up, and therefore my account is going up, or the markets are down, and this gives me the opportunity to either add on to some positions or to rediscover some other opportunities that I might have missed out on the first time. Every single one of my metal positions has gone down in the last two weeks, and I'm super stoked about it. Price moves in waves. It's not like I didn't see this coming. It's no big deal. It's a positive. There is never a bad day in long-game land.
And I know there are people out there who have heard me say things like this a lot on my YouTube channel and they've tried to do it themselves. God bless them, but they just cannot adopt that overall mindset. They still think too short-term. They're too attached to the money they invested. When their account goes up, they're proud of it. They're like, "Look at what I have accomplished. Look at that high number. Isn't that great? All of my hard work and my risk-taking is finally paying off." And then later, if the market drops, they flip out. They're like, "Oh my god, my life is over. Oh my god, I'm not going to be able to quit my job. My kids will never go to college. I will never retire with any money." All because of what happened in the span of a week. And when you think this way, this is exactly what leads you to do things that you should not be doing.
And let me tell you, financial media is completely against the long-term buy and hold crowd because there's absolutely no money in catering to people like that. You know, their business model is reporting the financial news of the day and often making these stories sound a lot more sensational, a lot more impactful than they actually are, especially in the long term. Long term, most of these stories are not impactful at all. They will factor in zero when it's all said and done. And if you think financial media on cable TV is bad, YouTube is a hundred times worse. But as a YouTuber, I totally get it. You really just don't have the option. You have to compete. You have to get clicks. You have to get engagement. And you're certainly not going to get there by saying, "Oh yeah, all these events and news stories happened in the gold world today. All these events and news stories happened in the crypto world today, but you know, in the end, it's not really going to matter, so don't worry about it." You know, this is not how you compete.
You know, the crypto space is probably the worst for this. You know, let's be honest. You know, if you're going to go to YouTube right now and you type in "crypto news" in the search bar, especially if you run a search during those times where crypto's red hot, you're going to see the same thumbnails with the creator's face on it with his mouth wide open like he's about to take one with a title that says, you know, "100x Altcoins" or "This is Huge." Nine out of ten times, it's completely inconsequential, or "Ethereum to the Moon." And it's just lather, rinse, repeat. It's the same stuff on the thumbnail side. Uh, and then the videos are always the same thing too. Now, I really like these channels. I watch them a lot, but I also know that they don't really have much of an effect on me. You know, I watch them mainly because I just like them and I like staying on top of things. You know, I'm in financial media too, so it's in my best interest to be on top of these things, and these creators do a great job. But you guys understand my point. When it comes to doing things the most optimal way, you know, do your research, spread yourself out, be right, sit tight. Methodology. From a psychological standpoint, the deck is stacked against us at every turn, whether it's the natural urges we have in our own big dumb heads or 99.9% of our information sources. You know, being able to resist all of that and to take the most optimal approach possible is a very hard thing to do.
Now, I understand I'm a bit guilty of this too. You know, the very first episode of this podcast was the introductory video, and then episodes one and two did have a hype factor to it. You know, showing you, "Hey, you should be excited about this and how you should not be fearful. You know, we are actually on the right side, so let's get excited about what's to come." But those episodes are in the past. The hype train has left the station, and after this episode, we're really going to start getting into it. So let's talk about some ways that we can make this process a bit easier and start pulling those odds in our favor a little more.
You know, when it comes to doing things the right way, because look, uh, crypto, I can't speak for as much, but commodities, you know, we're all waiting for one big thing to happen for the most part, and that is the economy falling and the big supply squeeze going on in commodities right now. That hasn't really manifested itself yet. You know, we're waiting for the confluence of these events, and we don't know when those things are going to happen. And financial media, who fights for clicks all day, love to try and predict when this is going to happen. And wouldn't you know, they're always wrong. So if they can't figure it out, our chances are no better. So you're just going to have to understand that this is going to be a waiting game of the truest kind. And therefore, you cannot be investing money that you cannot afford to lose. You need to be investing money that you literally do not care about because if you care about it, then you're going to be too attached to it, and the chances of you doing something impulsive go way, way up.
And nowhere do you see this happening more often than in the cryptocurrencies world. Why? Because most cryptocurrency investors are very young, and they don't have a lot of money. But they're also very heavily influenced by what they see, you know, in rap videos or on Instagram or people that are young and that who have, you know, doing air quotes, "made it." Most of them are scammers, and they're just pretending to make it. But you know, a lot of young people want to be rich in their 20s, not by actually working for it, but by placing their bets down on cryptocurrency and watching it go up really high. I can't say I blame them. You know, but you know as well as I do, every single one of them gets way too emotionally attached to their investments. You know, and if some of their cryptocurrencies were to go up by 20 times, you know, as well as I do, best-case scenario, they're probably only getting a small piece of that when it's all said and done. So from a psychological standpoint, you cannot be romantically attached to the money you invest. You cannot have these wild dreams of what you're going to do with all this money once you make it. You must understand the only time success comes before work is in the dictionary. And at the end of the day, you just have to learn how to chill out, be right, and sit tight.
Now, on the No Nonsense Forex YouTube channel, we have talked about the best ways to enter and really how to exit too. We just talked about it not long ago. So in the last couple minutes here, I'm going to give you a quick refresher on that. Now, the very, very first thing you need to do is to actually do your research on these sectors you want to invest in. Don't just listen to people like me. You simply cannot take the easy way on this. Now, this podcast was designed to get you part of the way there, but you must do the rest. Get educated in macro, and then get educated on the sectors you are interested in. From there, divide your investments up into more offensive and defensive investments, knowing that even the defensive trades are probably going to do really well once these sectors take off. So you don't need to go crazy here. I did an entire video on this on the channel, and I will link that down into the show notes. It's a video where I show you how to put together your own soccer team, for example, you know, with your more defensive plays being at the back and your more offensive plays being the forwards.
Now, this being said, if we're going to think long term, if you're going to be interested in many different sectors, so gold, silver, oil, cryptocurrencies, renewables, iron ore, whatever, unless you plan on having 85, 95 positions out there, you know, some of your soccer teams are not going to be that big. You know, what I gave you is just a simple example, but take the amount of money you have to invest and decide what approach you're going to take. Now, lay it all out in front of yourself. Draw it out because you really don't want to be doing this part on the fly. And also understand that a lot of opportunities, new opportunities are going to come up over time, so leave yourself some room for that as well. Now, I know I'm not giving you a ton of specific information here, but rest assured, the majority of these podcast episodes are going to be about opportunities and how to play them. You know, so get yourself laid out now so you're not scrambling to do this part later when you actually find these opportunities that you like.
Now, when it comes to exiting positions, this again, I said this before, it's this is the part that everybody gets wrong because they don't have a plan. Anybody who I talk to face to face about investing, I say, "What is your exit strategy?" And they have no idea. They look at me like I have 14 heads. And this is why in the last video I did on money management in crypto, I will link that down below as well, I didn't give you a specific plan. The plan I laid out was pretty broad, pretty general, but I'm like, "You just need to have a plan." And then when price hits those levels, you need to execute, even though you are probably not going to want to. Because when price goes up, especially when it goes up fast, we have these champagne wishes and caviar dreams. You know, by taking profit, we're cutting into our overall wins, and we don't want to do that. But as a lot of you traders know as well, when price goes up, when price goes in our favor, this is exactly the time where you are supposed to be taking profit, not when price crashes and everybody panics and tries to liquidate their positions. That's the poor man's game. We don't play that game. So please, please, please check that video out too and adapt that strategy to your own long-term buy and hold strategy.
As far as getting in and getting out, I feel like I went into enough detail on those two videos to where I really don't have to spend too much time on it now. But I did feel like this episode was extremely necessary because episodes like this don't get clicks, which is in my best interest, but they are absolutely essential to what we do here, which isn't everybody's best interest. I don't want you guys discovering all these opportunities and then picking the right ones and then spreading yourselves out, right? Only to mess it up in the end. Because these opportunities we have in front of us are gigantic. It is a great time to be a contrarian investor because despite what the world is trying to tell us, we are not crazy. We're just early.