PREPARE EVEN WHEN THE MARKET IS DOING WELL – Market Mondays w/ Ian Dunlap

[Music] Now the most important lesson for you And homework assignment is I want you to Go back over the last 20 years And figure out what are the top five Highest prices the vix has ever achieved So if the market is ever because a lot Of times when the market takes a turn For the worst and people are surprised It's only because they didn't prepare While the market was doing incredibly Well So if you have these prices marked off In advance they won't scare you as much And then you will start to have a Certain level of excitement when It's at like a doomsday kind of level so If I got an alert hypothetically on Zillow And it told me a house in Let's say Gary Indiana went on sale for Six thousand dollars And normally that house is 35 000 to me That's a hell of a steal these vix Levels really tell you the times that You should be staying and looking to buy In the market and when they hit lows as Times when the market Is not at a level on what you should Consider buying let me let me go back to The Chart real quick so I can show this Thing so if you look down here this is Uh April of 2020 this is here June of 2020. we were constantly at like 14

Dollars 15 in the market down here Across the board when the vix is this Low And the low over the last five years is 8 56. that is telling you that when Volatility is low that is the Calm Before the storm Then you can see in 2020 we stayed low Because of quantitative easing and then Once we had a little issue with Corona Which was the canary and the coal mine Scenario we shot up to 85 and then we Slid back down Vicks came back down now We went back to these same lows again And if I compare it to the S P 500 Listen So when the vix was low we had all this Upper movement consistently month over Month and then when the vix starts to Move to the upper side the market then Slides back down so you don't ever have To guess you don't have to worry about Opinion or conjecture or spin you really Really want to look at these two things What is the price of the vix Number two is it at a low If is that a low that's when you have to Start to get concerned about buying at a Bad price if the vix is that a high are Close towards the high that's when you Want to look to begin to buy high Quality companies and that's really the Easiest three-step system to be able to Know when to buy in the marketplace so

When I meet a lot of you uh guys in Public and I can't wait to see you at Marco Motors live in Madison Square Please go get your tickets and in London A lot of you are asking me like Historically what are you looking at and Now this is my going to be my last time Saying it your best bet is to go look Back 30 to 50 years on a stock Because you really get to study the History of An asset class So if you look back here in 1987 it's my The Year my brother was born this is the Year that I tell you that par tutor Jones made all that money during the Crash the vix got to 172.79 trust me the world was on fire And everyone this is like a hundred Times worse Than what the market is like right now If you look at all of these Peaks 2 000 Excuse me uh 1987. if we go to [Music] 1989 here is October of 97 2001 and I know everyone I've told you This before Um from 99 to 2001 things were really Tough uh the attacks on 9 11 of course Sent them the Market's spiraling because It was spiraling before then then if we Go to 2002 one two three four five five

Times it hit this key level Over and over again [Music] Of 48.62 which is a little bit less than The area we called it off earlier A 49 and some change so this 48 to 49 Area is a really key level in the vix Then we go to 2008 a shot up to 87 bucks Nowhere near where the price we were in 1987 but doing all of these times if you Would have bought and let's say you Would have known to invest in the market Every single year And each of these dips Um excuse me in each of these Peaks and Events you would have historically made Money A 100 of the time if you held for a Seven year period If not that complicated but number one You have to go study the 30-year period Over and over and over again for every Asset class that you are invested in and Then after that you want to look and Identify what the peak of the market is And even for stocks you need to go Mark A homework assignment the top 15 Companies that you really love go mark Off every Peak so you don't buy at those Areas how many of you would have been Better off If you would have done your homework on Whatever five or ten companies and say Hey once it gets ten percent away from

This high I'm not touching it I'm not Looking at it this is a secret that will Help you forever and honestly for me Five or six years ago I was sitting in The movie theater I was going through Think or swim When I did the same exact exercise I Marked off a certain amount of key Levels in which it told me to buy and it Helped my Trading Tremendously and when to buy long term And I hope it does the same And quick question for you why are you Not reading every Single report that the top five best Hedge funds are putting out I'll talk to The stock Club about this last week but When AMC and GameStop is on fire and you Know the whole plan was for crypto to Take over the banks and AMC and GameStop Would revolutionize retail investing Barclays They put out a strategy To elicit Retail buyers to buy more And the hedge fund would make money as The stock was going up and trading it on The way down Goldman Sachs Citadel JP Morgan Barclays Every quarterly reports they put out on What they're doing

You should read now that's for my Traders traders who like I really are in The weeds really want to be great at This if you are not familiar with the Strategy that they are running In this case it was a straddle strategy Why are you not looking and seeing what Your competitors are doing not only as a Retail investor and you may think hey I Don't need to know that I don't want to Work for a hedge fund or trade for a Prop firm but if you know How Because in every trade there's always a Winner or loser and there's always Opponents that you have So if I know hypothetically That and a zero interest rate Environment majority of all the the big Money in the world is going to be Invested heavily in Tech it does help my Two Tech to index strategy Tremendously And if I know when they stop buying they Would tell me also when to stop buying For those you in particular that do Options It would Help you Probably get anywhere from 300 to 600 Percent more return Over a two-year period if you knew what They were doing I would argue to say if You want to make any real money and

Truly have Financial Freedom if you're Trading and you do not know what Strategies they are running And I hate to say it and it will always Be true the hedge funds and banks will Always have more power than any retail Traders just because they're putting More money into the system you have to Know how they're trading to be able to Have an edge but what an amazing feeling It is to know and also be able to work That into your system Um Next year we're going to talk about it a Little bit more in a market money is Definitely we are but for sure I want You to be able to trade at least three Or four ways You have to be able to make money Whether the market is going down whether It is going up Whether it is sideways and especially When we have a bunch of volatility like We do now uh talks about it at Investments in Atlanta you need to be Able to trade four or five things at one Time to be able to produce Higher gains in a shorter period of time And putting on multiple trades at one Time Also is a hedging strategy so if you're Long Oil short es NASDAQ short bonds maybe Long natural gas

I wanted to this in more detail Um stock Club this past Tuesday but Please write down what or are the six Instruments or assets that you would Trade in 2023 To be able to give you wins regardless Of what the market does the truth is you Have to produce especially for the man Man I don't care if the market is down If the market is down for five years What are you going to tell your family When it's time to pay bills baby I can't Pay the bills because the Market's been Down and now my trading strategy is Effed up no it's not gonna fly It is not going to fly in any Market Condition If you if they're playing two three Zone You got to learn how to shoot If they're guarding you close man you Better have some hand don't be able to Go by and finish If they're sagging off you tween tween Step back boy light their ass up this is No different Right now Are You And your trading strategy calibrated to Be able to make six figures In a year and a month in a week in a day When you want to if not that's what you Have to fix it [Music]