Lessons - Don’t Get Investment Advice on Reddit | David Greenberg - Co-Founder of Greenberg Capital LLC

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investing advice and the importance of building a sustainable foundation for long term success so walk me through career as like what's the progression of a trader what's the career life of a trader it depends on how you go in those different ways and why also just another point you mentioned before why only your own money well you know for one you made more okay to so in the pit there are there are four brokers ups you know four brokers on the top yeah thing about a ring with and they did they traded some of their corporate money their money and they did customer orders but you know when you were what we call the local trader you know it was like literally you want to talk about the batch of entrepreneurship yeah every day you put your money on the line it was yours and you know you made it what you made you made and what you what you lost your loss I mean you know these you know I've got no offense to some of my friends that are you know financial advisors but Mark who goes down a thousand points they have to call their people up well you had a bad day but you know they'll still get their commission yeah when I had a bad day it was my bad day you know you might go home kick the dog and you know just put your head under a pillow because you know that was the kids college or that was the kids you know you know um summer camp or whatever but there was no greater rush so that's why when I when I talk to people the first thing I say when they said they were a trader I said did you trade your own money because it gives you I think a lot of the reasons why I have perspectives and lives and life that I do not only from some of the events that I went through that we'll talk about was that you couldn't lie to yourself as a trader yeah okay you know the the thing that really drives people nuts about me especially when I coach them and some of my friends I said those friend of mine that um see over a billion dollar company and I walk into it was always because I love this guy you as you're always no worries down you know because I don't allow people to live in their little fantasy because we couldn't if you were long and the market was long means you want the market going up and the market's going down you will lose the money you can't lie to yourself yeah where it's like you know you're you're dealing with other people's money well then you know just hold on yeah I love this you know the markets lower buy more I'm like that's adding to a bad position in my mind yeah I mean I just like now what's happening and all these reddit traders got destroyed well that's what I'm so curious about because like now I see these people selling investment courses and day trading why don't I just use YouTube and all right I just no no I know but this is like this is the shit that you're dealing with yeah and none of them have the experience that I have and the people on the trade of yeah and know when they're like well you know you have to remember you had a 15 year period that every time the market came off the bounced yeah so I was like and I would teach my class guys it doesn't have to bounce so when they had the whole AMC thing and all the other things were like oh buy the dip buy the tip I had this one trade I call it my public's pharmacy trade and I would walk in and my public's pharmacist would go I got I got diamond hands I know what does that mean when never let it go we're never selling like what do you never suddenly goes AMC and game stop so I'm like okay good I go to I go to I go to my e-trade camp I sell like 3,000 no game stop you know it's like what are you doing because you can't go short that's illegal I go no it's not illegal number one I go one I'm not going short to bury the company I'm going short because you're telling me I should buy it so I go short market comes off buy it back you know I was in the next day I'll get it bounced after I bought it back so he was told you diamond hands diamond hands I'm sold again you know I mean I made a lot of money off my pharmacist because I said where are you getting this information and he's like all of the guy in the produce you know he knows his stuff because he's following some guy in YouTube he goes buy every dip and let me tell you something you buy every dip and it's a great way to blow yourself out and so many people got hurt in the stop market sell off of the past two years because what happens is that nobody I teach what you know when my trading classes and my investing classes that you always it takes the profit I love when people say I don't want to take profit I want to pay the taxes and they call them up and go well now you got less taxes you know so uh you know nobody knows the art of you know managing your money within a position so they buy buy buy in the way up and they buy buy buy in the way buy buy buy here and then try and hit the top of the trial and you buy buy buy here now you're down on this and you're down on this so when people said you know it's not far as down 20% you know in the other year people with down 40% you know on some stuff because they they dollar cost averaged and didn't work their way and you know we as I said there's a difference between adding to a position and adding to a bad position and it's never talked the right way and people go in and they just screw themselves over so you've got all these people online that no offense to them I mean I'll go against my trading and my you know statistics any day against some of these people a huge shout out to federated computer for supporting today's episode let me explain why I love federated computer why they are friends of success story they are changing the way businesses buy software because we all need software to run our businesses I don't care what kind of business you're building but the best business software doesn't have to cost thousands of dollars each month so federated computer replaces a lot of the software that you're using right now let me explain 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market it's not just the one-way market anymore and the guy just like but it's going to 250 I know it I'm like okay you know that's what I went from 60 down to you know people got get asked on that wherever it is now yeah 30 something you know but so you got you know the internet and Instagram and everything well it can do a lot of good can do a lot of harm yeah and you have some people out there that are telling some very young generation people some things that I think that are going to really hurt them as time goes on and I've been deep programming some of my friends kids from this I think you have to I mean so to give you an example of what I see now I see people that have meme coin telegram groups right whereas a group they buy together because they think that somebody's going to shell and pump I'm pretty sure that's illegal right already well yeah so I pump it down yeah but I mean like there's like group set up for this shit and they're advertising to come join my group yeah guess what and the guy that says come join my group is selling to everybody that's yeah yeah when that thing starts popping up he has the original number yeah right and but that's that's like malicious there's a lot of like idiots that aren't malicious as well right yeah no there's just some idiots that you're just trading stuff to think it's going to work but my question is and this is something that the younger generation is just not getting listen be careful just not getting the question is it might work now but what's going to work for the next 20 or 30 years okay because everybody's earning potential and there are powerful earning years do not last as long as they think they do I know my I know I know I know I know some really wealthy people and at some given point unless you happen to have the right product that you know it's on going and you know you can do it but so many of these young what they call these entrepreneurs are not really entrepreneurs they're just getting lucky and what happens in their 30s when they have a mortgage in the house and two netteds and they need to go to college and they're unhierable and that's what I think that's destructive in in the concept of today thinking that everybody should be an entrepreneur I believe that you can be an entrepreneur and somebody else's business it's very something my son wants to open up a fund one day so what does he do he ends up going to college and made him go to the you don't want to go to to know the story of himself he ends up getting a job for this guy Howard Lutnik who's a CEO of Kenneth Sterlty works for him for three years then he goes and he goes to NYU to get his masters then he picked he got over some five nice pretty credits with not the right bank to pick but it was good it's a benefit experience but he's getting that experience yeah and I said to him finally he's 28 years old now and I said oh so maybe when you're 35 you'll open up if I use now wait till I'm 40 I got a lot more to learn because when I teach these kids is build a build a foundation that you can lean back on for the rest of your life my daughter she's a photographer graduate in new house you know in Syracuse great photographer great editor she's like I'm never going to this will not be sustainable for the rest of my life because she's so very quickly that people get on their phones and they say whatever so she ends up getting a law degree so and the way that I kind of got her into the mindset of the law degree because she's really an artist I say I'm partners of a restaurant called Hutton Fish Club in New York City wild rather great restaurant and the waiters there are waiters to permit to pay for their acting career so I said to my daughter your your photographer who happens to be a lawyer that's paying for your passion so you have all these people like you know what's the beginning go for your passion yeah well guess what your passion not be it might not be able to make enough to sustain you for the rest of your life so sometimes you actually have to get a job to cover your life and your passion and that's something that I think a lot of people are mixing up and the question is on this 20-year-old and 30-year-old generation what's going to happen when they're 40 and 50 because you know what I just started 59 you got a little more tired you know you don't have the energy you might have the wisdom but you know you don't have the energy so the question that I put to some of these people that are doing this okay it's great you're having a blast now you're living your truth you know all those key words that are thrown all over the place but what are you going to do when the real responsibility kicks in you know when it's not just you you know and I hope that you know people have a good relationships and they'll they'll have partners and they'll have wives or husbands or whatever works for them and then they'll have families and they'll you know experience all the greatest things that I did with my kids growing up which is really where the real rush comes in right but the question is is that no one's thinking further in the future and now they're all thinking just money and happy day you know what I get the greatest thing that we're happy to talk about my career so two of the greatest things that ever happens to me my first two weeks of being on the trade of floors in Chicago my first thing was I went to this guy who was you know the guy was going to be working for it trying to be a real mafia guy you know I went there the first day they come back into weeks they found his friend in the ditch like okay like a real real mafia like real mafia stuff so so I walk into his office and I say to him you know what I'm going to be the best broker you've ever seen I'm going to do this I'm going to do this and this and he's like David just sit down and shut the fuck up you could talk to people back then like that without them running out of the room being you know oh look what he said so he says shut the fuck up you know and I'm like he was just see that trading floor out there like yeah he was just how exciting it is see the rush that it is yeah he goes one day it's gonna be a job because one day you're gonna walk in and you're not gonna want to get spit on and you're not gonna want to get knocked on the head and you're not gonna want to deal with the pressure and you're not gonna be feeling well and you are not gonna want to do this this is but because this will afford you and your family a quite interesting lifestyle and if you're good at it you can do a lot of things with this so if you look at the long term and realize it everything turns into a job very few people skip their way to work every day I I'm envious of the people that do a lot of musicians do a lot of artists I love that you know if you could do it great but the problem is that the majority of the people don't have you know so he gave me that advice the other piece of advice I got was there was a guy there he would look like Ripley and Weagle you know I mean create you know red red crazy here it looked like he'd been there forever you know and I was you know 20 something year old shit so this guy might have been younger than me now but who knows right so he looks to me and he goes I know who you are because I went very quietly because my father was on the board of the other changes in New York and so I went you know just do my own thing because I know who you are he goes listen me he goes you're going to have the chance to get into the ring one day he goes and when you get into the ring no one's going to care about who your father is no one's going to care about where you went to school there just going to try to rip your throat out because that's what we do here he was I will never have the chance to get into the ring he goes I've been working here for 30 years I've been a clerk for 30 years I'll always be a clerk for 30 years he goes something to give you some advice he goes watch he goes watch the people's faces watch the people's how they breathe watch how the runner you know runs from the desk to the pit is he is he running quickly is he running when the broker you know grabs a piece of paper look at his eyebrow you know look to see if that broker is looking at the girl did he sleep with her last night what's going on you know I mean he goes look at everything and taking it every day and you'll be a great trader if you've been learning how to process the information and from that day on all through life I look at everything you know and that's why you know we can talk about too when I went blind to my right eye and hey I world disappeared that really screwed me up so what would happen is I would get I would put in these interns in New York and I would put them in the middle of the train floor for two weeks I wouldn't talk and I would get a call from you to them of their parents no my kids not learning to say really and I would give this kid the same speech that this guy gave me and all of a sudden it opened up his eyes you know because if you start looking at life and you start looking at the world literally everything every moving part and you take it all in you're going to be quicker than everybody you're going to understand what's the worst common you're going to be able to react faster you know I was one of 17 traders that was brought down to Quantico to get drilled by the generals they wanted to know how he thought so quickly with our own money with that kind of pressure and being able to screw up I will host class on screwing up you know people don't realize it maybe 60% of our trades 50 to 60 to 70 were losers every day but if you if you were upset with your screw ups you never you never could do one thing so you know I I talk about that but those were the two things you know that this guy says to me get used to it it's going to be a job so they were at the end of it I was like I don't want to do this anymore you know but you did it and you know but I still to this day think about that if I could find that guy with you know the Rookway on Winkle guy and just thank him for that piece of advice you know and that was life changing thanks for tuning in if you found this valuable don't forget to hit that subscribe button so you never miss an episode and if you want to dive deeper into this conversation check out the links in the description to watch the full episode see you in the next one