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Trading Your Way To Six Figures- Episode #170 w/ Aristotle Investments

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September 20, 2021

TLDR: Aristotle Varner Jr shares insights about stock trading strategies including researching individual stocks, using fundamental analysis and trends, market timing, buying rumor and selling news, beating the 'I should have invested' mindset, the importance of the 20% strategy, and more.

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  • Investing InsightsInvesting during market downturns can lead to success. Learning concepts like support and resistance helps traders make informed decisions. Aristotle's journey from barber to trader shows that anyone can succeed with research and strategy.

    Investing in stocks can be a path to financial growth, especially during market downturns when fear drives prices down. Aristotle, a trader with significant experience, emphasizes the importance of buying when others are scared. He transformed his life from barbering in the army to educating thousands on stock trading, illustrating that with research and analysis, anyone can succeed in the stock market. Understanding concepts like support and resistance is crucial for making informed trading decisions. By focusing on both long-term investing and short-term trading, individuals can develop a diverse portfolio and potentially reach significant financial milestones, proving that knowledge and strategy are key in navigating market fluctuations.

  • Investing InsightsInvesting requires understanding whether to focus on stock charts or company fundamentals. Beginners should assess their time for trading versus investing long-term. Education and self-teaching play crucial roles in building confidence in investing, influenced by personal experiences and determination.

    Investing in stocks can be approached from two angles: technical analysis and fundamental analysis. Technical investors focus on chart patterns and price movements, while fundamental investors look at a company's financial health. Beginners should consider their available time; if they can dedicate time to watching stock movements regularly, active trading may be suitable. For those with less time, starting with long-term investments may be better. Self-education through books and online resources, as well as learning from personal experiences, is key to building confidence and understanding in the stock market. The journey can be influenced by personal background; experience in overcoming obstacles can empower individuals in financial ventures. With discipline, the right approach, and the willingness to learn, anyone can navigate the complexities of investing and potentially succeed. As demonstrated in the conversation, determination and commitment to learning can lead to entrepreneurial success.

  • Growth JourneyNetworking and diverse experiences can spark curiosity and success. Learning from multiple sources fosters understanding and helps in navigating new challenges.

    This conversation reveals the journey of a barber who, after six years in the military, discovered a passion for trading through networking and life experiences. Overhearing conversations about stocks inspired him to learn about trading, and his struggles motivated him to seek financial independence. His experience moving to a predominantly white school exposed him to new perspectives and taught him about generational wealth, fueling his drive to succeed. It emphasizes the importance of curiosity and gathering multiple opinions when learning something new, and showcases that applying oneself and being open-minded can lead to growth and opportunities.

  • Investing InsightsResearching stocks requires understanding fundamentals, market timing, and using indicators like RSI to identify good buying opportunities, particularly during market dips when fear prevails.

    Investing in stocks requires thorough research, primarily through fundamental analysis, which involves assessing a company's assets against its liabilities. Resources like SEC.gov and Simply Wall Street can help investors gather necessary information. Timing is crucial; it’s often better to buy during market dips when others are fearful, rather than when everyone is eager to invest. Understanding terms such as bullish (expecting a price increase) and bearish (expecting a price decrease) is essential, as is knowing how to interpret market trends using indicators like the Relative Strength Index (RSI). Overall, successful investing hinges on patience, informed decision-making, and a firm grasp of market indicators.

  • Investing StrategyTo invest wisely, buy solid stocks when they are oversold, and avoid buying on news days. Instead, purchase before major announcements and utilize tools like NetSuite for better financial insights and management.

    Investing wisely in the stock market involves understanding market signals and being strategic. When prices dip due to widespread selling—often influenced by big institutions—it's a good time to buy solid companies like Apple or Tesla. However, don't buy on significant news days; instead, purchase before the hype. This "buy the rumor, sell the news" strategy allows investors to benefit as prices typically rise after news is released. Successful investing requires real-time insights into market trends and staying focused on long-term gains rather than short-term fluctuations. Using tools like NetSuite by Oracle can help manage business operations, providing valuable data for making informed decisions. Control over finances allows for a more forward-looking strategy, helping businesses and individual investors navigate through uncertain times without getting caught up in the chaos of market emotions.

  • Investing InsightsInvesting wisely requires research and strategic timing. Platforms like Robinhood attract new investors, but experienced traders often prefer others. Diversifying with strong long-term stocks, such as Boeing and Kroger, can lead to significant gains while exercising caution in high markets is essential.

    Investing in stocks requires careful thinking and timing, especially in a changing market like after the pandemic. Many people turned to stocks like AMC and GameStop due to social movements rather than traditional financial reasoning. Popular platforms like Robinhood made investing easier for newcomers, but more experienced traders find them lacking. Long-term investments, like in Boeing or Kroger, are recommended by some for their future potential. It’s crucial to research and analyze before making trades, particularly when the market is high, to maximize gains and minimize losses. For those unsure, it's wise to be cautious and consider market trends before jumping into investments, which require ongoing awareness and strategy to succeed. Staying hydrated with a smart choice like Smartwater can be a symbol of clarity as you navigate the complexities of life and investments alike.

  • Experiential InvestingInvesting successfully relies on personal experiences and knowledge about market trends. Life lessons help recognize valuable stocks, leading to better investment decisions and long-term profits.

    Investing in stocks goes beyond just numbers; personal experiences can inform better choices. From identifying valuable companies like Kroger and Dollar General through local insights to understanding market trends by observing consumer behavior, practical knowledge gained over years can guide investment decisions. Staying true to this experiential learning helps traders determine when to hold or sell stocks for profit. The connection between life experiences and market movements highlights how patience and careful observation lead to wise financial decisions, building a robust portfolio based on solid data and personal understanding. This approach can transform day trading into long-term wealth accumulation, where insights from the past shape future investment strategies.

  • Trading FoundationsFoundational knowledge in trading, strategic use of capital, and risk management are essential for trading success and capital growth.

    Understanding stock trading requires a solid foundation in key concepts like support and resistance, candlesticks, and trend lines. A successful strategy, such as scalping, focuses on quick trades with managed risk, often using a portion of capital to minimize losses while aiming for consistent, smaller profits. By strategically using only 20% of available trading funds and aiming for a daily profit target, traders can grow their capital over time while limiting risk. Overall, patience, knowledge, and discipline are essential for long-term success in trading. It's critical to learn and adapt rather than invest blindly, ensuring that one has a plan in place to maximize profits and minimize losses.

  • Trading EssentialsConsistency and education are key in trading to achieve daily profit goals, while setting stop-loss limits protects your investment. Engage in a supportive community for enhanced learning and success.

    To achieve financial success in trading, consistency is crucial. The goal is to make a daily profit of $400 from your investment, which can lead to six figures over a year. Setting stop-loss limits, such as 20% for day trading, protects your capital. Education is vital; understanding the market and rules helps prevent losses. Share knowledge and learn from communities, as they can provide support and ideas. Whether you're trading options or stocks, stick to your plan and adjust your strategies based on your education and market performance. Remember, it's a process where every day might not be profitable, but maintaining discipline can lead to substantial gains over time.

  • Empowerment Through LiteracyFinancial literacy and community support are key to personal and professional growth. By creating multiple income streams and sharing knowledge, you empower both yourself and your community.

    Understanding financial literacy is crucial for success in life. It involves knowing how to wisely spend, save, and grow your money, which can include creating multiple streams of income, like investing in property or starting an Airbnb. Collaborating with family members can also enhance business success. It's essential to use your knowledge to uplift your community by sharing what you learn. By doing this, you not only improve your life but also contribute to the growth of those around you. Additionally, engaging in supportive groups can provide the mentorship and accountability needed to push entrepreneurial ideas forward. By taking steps to manifest your dreams and staying hydrated with the right choices, you can maintain energy for all areas of your life, whether it's managing a business or keeping up with personal responsibilities.

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