Known as the most famous man on Wall Street with almost four Decades of experience in the New York Stock Exchange an unsuccessful Trader will have no plan they'll watch it go to 51 they'll think oh my God it's going to 55 they'll never take a profit they go get a coffee it's trading at 48 they buy more it goes to 44 they can't take the pain anymore they sell it stock goes back up eight bucks they blame the Market maker introducing Peter Tuan also known as the Einstein of Wall Street in this episode we explore
not only exact strategies for profitability but also the history of the markets itself what it's like trading on the New York Stock Exchange on the trading floor this is a must-watch episode for any Trader who wants to make it within the markets to learn from somebody who's been doing it for decades a professional Trader with verified results lasting the test of Time information is a funny thing I as a broker on the floor of the stock exchange have access to information called Market unclosed imbalances what does that mean that means there's a birdie who once
told me that if you put $250 a month into the S&P 5 00 from the age of 22 till your 60 you will have $1.3 million the 60-year-old thing may not be that sex0 but 1.3 million is very sexy certain Traders would believe that the market is operated by a central Algorithm and that price is delivered price is engineered and that there's higher Powers let's say is there any elements of Truth in that yeah I don't believe so so look ladies and gentlemen welcome back to another episode we have the honor of being joined by
the Einstein of Wall Streets Pizza thank you very much for joining you've given us a moment of your time and a busy schedule for the Summit New York to Dubai so I want to take this Episode directly to Value the audience that we have are retail traders that are looking to learn and I want to take this opportunity with the unique background that you have being from the Wall Street Stock Exchange and traditional Finance I want to start off with retail traders in in my generation we are obviously looking to social media to learn and
a lot of YouTube videos and so forth platforms like this and one of the most prominent I have to ask one of the most Prominent things that Traders end up at is this concept of smart money Concepts an ICT when it comes to traditional Finance Wall Streets and so forth is this a term that you're familiar with I've never heard of it I don't know what that is what is ICT and what is Smart uh tell me me good to know I mean it's a school of thought that has been around for maybe a decade
or two that is probably the most viral way that Traders are looking to learn um because it has Certain benefits of high risk reward and so forth but it's good to know that you're you're non the wiser because I think that says enough a lot in it yeah no I mean if you would describe it to me what does it actually mean it's uh certain certain parameters would be an order block within price action an imbalance or a fair value Gap liquidity runs these kind of price action terms that Traders are utilizing to Mark the
chance wow spectacular so you know I've Learned I've learned over time that I have a pretty big presence on social media and uh you know uh I don't actually listen to a lot of social media around trading even though I do a lot of it uh it's like I don't don't uh you know uh many of the people who are involved in it I don't listen to I don't know who they are not for any level of disrespect it's just I'm too busy uh you know and so and I'm my way is different I I've
learned that my way look a lot of That terminology I don't know the words and they don't mean anything to me when I deal with when I deal with retail so I have uh I have an Academy with my partner David green called Wall Street Global Trading Academy we have thousands of students from all over the world and they will often talk to us and ask us questions about like the iron Condor and all these wild I guess trading strategies within social media of today and uh it's not our wheelous we don't Know anything about
it and so we are we are more traditional I guess or you know it's terminology that that that I'm just not familiar with so there's another thing that could be part of is that obviously to stand out in the social media game you have to reinvent marketing and so forth could are ter we canate where when it comes toket when when I look at the ex or currency and so forth certain Traders would believe that the market is Operated by a central algorithm and that price is delivered price is engineered and that there's higher Powers
let's say is there any elements of Truth in that yeah I don't believe so so look there are a lot of misconceptions around in the retail World about uh bad players in the game uh the the man is out to get you the whales are here to hurt the retail Trader market makers are bad people they they they they will take a stock down to your stop order and then Rally it back up and and and kind of screw you over in a way you know I'm a firm believer and I mentioned it this morning
when I spoke that when people are successful in the day trading game you will never hear them blaming uh anybody else for their success they will love to take credit for it that they have time in hands that they're the best Traders and whatever when people are unsuccessful trading they love to blame everybody but Themselves they will blame the market maker I will ask one of the big positions the postures that we take is about risk management money management order management stop orders right the stock exchange has given retail Traders this incredible tool called a
stop order what does a stop order mean that means that I'm able to identify how much risk I'm willing to take in the market for example I buy 100 shares of XYZ at $50 And I put a stop order in at 49.5 we believe that 1% of the price of the stock is a good price it's like it's identifying how much am I willing to uh lose for this trade right so when it comes to risk am I willing to risk $50 to make $200 all day long am I willing to risk $200 to make
50 well no I'm not because because net net one losing trade it will take me four winning trades to break even so I'm always chasing failure okay so one of the biggest Misconceptions and I've dealt with market makers my partner was an ex-market maker in Bank of America and IBM right I've been on the floor for some say 137 years uh right uh I'm on anti-aging medication so I just look this young and I've dealt with market makers I've done witha dealt with Traders I've been on all different sides of this Market right uh I
started in 1985 I've been a retail Trader an option Trader a convertible Arbitrage Trader on The floor I've done risk Arbitrage uh um and throughout all this time up until recently I've never owned a share of stock for myself okay A little known fact okay reason being that as a registered broker on the floor of the New York Stock Exchange who has a seat on the floor of the stock exchange I am not allow to be in a stock for myself personally and for a customer within a 30-day period because of Insider information Regulation correct
exactly so uh with that being said I built a strategy 16 years ago around trading Market on Clos and I'll be happy to explain to you that of course but I trade all 347 stocks that are in the S&P 500 on the floor of the New York Stock Exchange so in the S&P 500 obviously they're 500 stocks 347 of them are on the N the rest are on NASDAQ reason being that back in the day right there were valuation issues and a lot of the new startups and a lot of the New tech did not
have the valuation uh uh uh warranty a listing on the NYSC their valuation needed to be 250 million plus I'm not sure the exact numbers and uh so they went to NASDAQ nasdaq's rules are a lot more LAX when it comes to capitalization and the ability to list an IPO so that's why you'll see the Netflix and the Amazon and the nvidias and those listed on on the uh NASDAQ over the counter market as opposed to the NYSC so I want to explore so you've been well I guess next year is your fourth decade completed
on the New York Stock Exchange so you've been around in the game a lot longer than most of the viewers that I have I'm only approaching my first decade in the markets and so therefore I haven't seen full Market cycles and the ups and downs that an economies can have and I think in your time we've had the crash of 87 we've had the Doom bubble we've had the crash of8 we've had covid We've had quite a lot of turmoil and it seems like they are rather cyclical and with everything that's going on in the
world with the prospect of wars and all these kind of things how do you see the future of the US the future of the markets and any future crashes that could be coming or how to even navigate these kind of situations I app appreciate the question a great question first of all it's important for me to note that I don't use the word crash Very lightly the terminology that is historically used on the in the stock exchange in the financial business like recession uh inflation uh the death cross the yield curve uh uh uh bull
markets bare markets um are no longer relevant in my belief in my world okay the world changed during covid right uh uh I'm not I don't think for the better okay I was basically patient zero at Co I got Co on March 15th 2020 uh I was incredibly sick I had 103.7 for almost three and a half months I got menitis my cervical spine collapsed I've had seven surgeries since then I was in a neck brace for the last four and a half years up until recently so and I was given four days to live
at one point during my my journey throughout this so it changed my life and ruined my life in lots of ways but I'm a Survivor so I I kept I kept uh kept going um what happened during so if you imagine the stock market and the Financial industry and the economy as sort of like you know when you're a little kid your mom your dad gives you a 20 piece jigsaw puzzle and then as you get better as you get smarter you get a 50 piece puzzle and a 100 piece puzzle right so if you
think of the stock market like that the components all the different things things that happened in covid dismiss the relevancy of so much that we historically call the standards of Wall Street okay you cannot use a Term like a bull market and a bare Market that you understand as something that happened within the economic cycle of a decade or a generation or whatever it is when in January of 2021 at 11: in the morning on January I don't remember the day I was the 23rd uh in the morning we were down 14400 points at 11:00
a.m. and the the the the Press was talking about oh my God we are now in a bare Market the first bare Market historically a bare Market is a 10% drop From the last sale and for extended period of time I'm not even sure the actual definition of one and then the market reversed and by 2 o'clock in the afternoon we were actually in a bull market right and so when you have something that historic used to take generations to happen right now happening over lunch well you need to re-evaluate these things especially when you
know people use them in such a significant way that these are you know These are economic Cycles these affect markets they affect how people invest in the market they affect they explain the economics uh of our country I mean it suddenly went at Co to a thousand piece chicksaw puzzle with so many different components that you know you know the world's changed since Co and I could describe to you in detail fortunately I have a photographic memory but if we go back to uh uh I'll go back to February 12th 2020 the markets were trading
at Record highs across all indices okay February 12th was the day because that was the top that was the high the Russell the S&P the Dow the NASDAQ were trading at record highs the consumer was an incredibly healthy condition the bank were in the bank's balance sheets were incredibly robust and healthy and everybody across the board were do was doing quite well little did we know that six weeks later the market would have sold off 10,800 points people would be Dying in the streets and that the market would Caren off of a cliff and we
would be entering a uh a global pandemic which changed the world forever MH okay so that left us from February 12th until March 23rd which is was the the the the cliff dive okay and everything changed that day right everything about the market everything about our lives everything about the economy everything about everything right suddenly and it was look every crash and I use the Term in a serious faction fashion going back to the crash of 1929 has been that n a better better buying opportunity and selling opportunity every one of them every crash and
there have only been a handful of crashes in history going back to 29 right going back and I don't know that much about you know the World War II and all that time it was a different time and we don't need to go there there's plenty to describe and talk about between then and now but the crash Of 80 and I was there for all of them except the crash of 29 even though some people believe I was around for that time some people believe I I signed the Buttonwood agreement but that was not true
so out of the dozens and dozens of prop firms that exist in the whole Space who can we really trust whether they use slippage whether they use types of draw down unrealistic trading conditions every single prop firm has hidden tricks so after thorough research and speaking To a lot of Traders Alpha capital is definitely the best prop firm in the space so apart from there no commissions low spread no slippage great reputation never denying a payout because you are a Titans of Tomorrow viewer you get a special discount on every evaluation just using the link
or using the code to for Titans of tomorrow so in um uh there was a crash of 87 and people should know and I hope your audience does this research because history is powerful and History really uh explains a lot of where we are and I don't want need people to dwell on it but in order to understand where we are in the economic cycle and where we are trading and investing it's really and to have an overview and overall perspective of what's going on uh it's important to know the history and I'm going to
give it to you in just in as short a way as possible but so February 12th to March 23rd the market sold off radically okay The crash of 87 each one of these crashes has had different components that made them happen okay I don't need to go back to 29 but the crash of 87 we were coming off of a record high in the market there were some insurance issues there are a lot of different components it's long for me to describe each one of them but people should investigate it because each crash 87 2000
uh uh um what was in the middle and the do bubble right each had very distinct Components that contributed to the crashes that happened later on 87 was an extraordinary time percentagewise the largest selloff in history okay um and uh and I was there I was trading it I was a clerk I started on March 23rd 1985 I came down to the floor of the stock exchange as a t typus there is no training for that job okay there's no school you can go to to become a broker everyone's goal when they come down on
the floor of the exchang is to become a Broker that's the dream in 1903 they issued 1366 seats on the stock exchange that gives you the right to trade stock and the seats on the stock exchange it's like a taxi Medallion in our world they've got the price of them goes up and down no longer because they company went public and it's a different story now but the price of the seed went up and down Bas and he used to trade actively on a daily basis going back to 1920 back to 1903 based on the
economy based on the markets based on the demand for Traders and Brokers on the floor of the stock exchange the crash of 87 extraordinary because I remember it really well I was still new and I remember it was the it was the beginning so computers came out around 1983 they were not on the stock exchange until way way way way later but what was available on the stock exchange in 1985 and 1987 was a thing called a Quron machine a Quotron machine was a static uh TV teleprompter type thing and there was also a machine
that called a DOT machine where orders were coming down electronically and very archaic right it was like the old clung clung clung right but the orders were coming down and that day 1987 the market sold off 683 points 30 something per sell off net net based on where the market was right we obviously know a percentage based on where the Dow Was it was the biggest crash but my memory of it was extraordinary I was a clerk so I started as a telet typist and came down there right I my my career uh up my
my life before that was an extraordinary one I grew up in New York City my parents are Eastern Europe European Jews they were in the Holocaust they spent four years in prison they met after the war in the a displaced person Camp fell in love came to America had a couple of children my father was a very Famous doctor uh in the US and uh I grew up on the upper west side of New York with every possible um uh unconditional love and a wonderful upbringing right and um and so I had a wonderful uh
wonderful early years I ended up going to college uh I at one point in my life wanted to become get into agriculture uh I graduated high school early I ended up going and living in Israel for a year I wanted to work on hybriding of plants and I did I ended up coming back to the States in uh I don't remember the year 197 uh I came back oh came back to the States uh after my year in Israel and got a degree in agriculture at the University of Massachusetts one of the top a schools
and I um after two years of that I have a brother who's now in his who my father adopted during the war he's in his 90s he's still alive my father uh lived to 97 um and uh so I have an older brother who was a major player in the stock Market and uh he ended up so my father adopted him during the war his parents had been murdered he was eight years old my parents met they fell in love the United States only allowed 40,000 children in after the war it cost $50,000 per child
to come as a refugee all right my grandfather was the CEO of suard chocolate before the war and so he was a very comfortable wealthy man he was able to pay for this young man his name was Harvey Catz to come to America After the war he got foster parents my parents met uh they brought him to live with them he went on to make a long story short he had went on to become a major Titan on Wall Street and um so after my two years as an a student my older brother we called
him my older brother said enough is enough it's time for you to put on your big boy pants and and get into finance and become a go to the stock exchange and so that's what I ended up doing uh I got a degree in International finance uh I uh moved back to New York I owned a record store on bleer street I had an African art gallery I was booking jazz concerts all over the world I was the doorman at Studio 54 I was trading I was trading Commodities and um and I was getting a
Masters in Business at baroo uh College I say all this to say that I've had this incredible journey all around I ended up living in West Africa for 2 years in the People's Republic of Benin where I did The accounting for a Norwegian Oil Company came to Wall Street 1985 I was 26 I had already lived a few lives right but I was a I think I was a young entrepreneur with a real hunger for chaos adrenaline excitement and what Wall Street ended up offering me which was when I walked onto the floor of the
stock exchange the the chaos the excitement and this incredible Dynamic actually I felt I had arrived and I was in a place that your audience obviously They're involved in the market now because they got that feeling right every day for me is like being in the Super Bowl right there's nothing better right why what draws people to the New York Stock Exchange for one example or draws people to trading right and that excitement the adrenaline of of of trading a market being in an auction market and making money in the market it's an extraordinary it's
like no other feeling in the world making money doing It is extraordinary losing money could probably be one of the worst feelings and I'm giving you this whole scenario because I need people in your audience to understand that there are certain rules this is where this conversation started you ask me how there some misnomers about what's going on and one of the biggest ones is that people think that market makers on the floor of the stock exchange are out to get them and that they think that they see their stop Orders and that they take
the stock down they take them out on their stops and they let the stock rally back up the biggest misnomer on earth right and so I also started out this conversation by saying successful Traders don't need to blame anybody but themselves for making money yes unsuccessful Traders love to blame anybody but themselves for losing money and at the end of the day one of the reasons I've embarked on this journey to educate motivate in Inspire The new generation your audience to become great Traders is because suddenly all of you young people in this in the
investment and trading Community who got invited to this party that you were never welcomed at up until 19 uh up until 2020 right during covid Weeble Robin Hood suddenly before all that you needed to be an accredited investor to day trade or invest in the stock market that meant that in order to open up a trading account you had to prove that The money you invested or trading that you were trading with if you lost it all would have no effect on your standard of living for five years oh nobody but the 1% of the
1% could ever say that I couldn't say it right so that kept it very exclusive that's why very wealthy people are the ones who are in the market for me this uh so you mentioned a lot of things one thing I want to latch on to is obviously the retail Traders and their their composition in the Market is probably a drop in the ocean in terms of the orders that they that they have a lot of trading strategies around the this day and age at least a lot of retail traders that are watching utilize liquidity
and terms around that obviously in the stock exchange you have access to the books you have access to the orders does any form of manipulation any form of liquidity have an effect in the markets as you're saying it's not necessarily the market makers attacking But is the manipulation of orders or spoofing these kind of things something real good question so look there always are going to be bad actors in any space there are Bad actors on social media those who are doing the pump and dump those are doing the you know who are like the
Jordan BS of the world that that those people do exist that was real the Ivan bosies of the world people who come into the market and man at the market right the Floor of the stock exchange fortunately has never been a place until Jordan balford was a place where a lot of that fesi stuff I'll use that word really went on but I don't want the retail Trader to think first of all that the big players the institutional players the hedge fund people are out there trying to manipulate the market to hurt the retail Trader
by Nature by the size of what they're doing they move Market are they sitting up there rubbing their Hands right with pointy ears and you know planning to go screw everybody over I don't believe that at all the market makers are not out there to hurt the retail Trader I don't think by Nature the size of their order flow and the connections that they have obviously they have access to more information not inside information just more information information is a funny thing I as a broker on the floor of the stock exchange have access to
information Everybody who has a seat on the stock exchange has access to information called Market on close imbalances what does that mean that means that the order flow coming in okay I got to go back for a minute um the New York Stock Exchange used to do 80% of all the volume traded on the US markets back in the day now we only do about 35% of that because they deregulated the trading platforms and the and the market making Community so that basically anybody who can create a platform whether it's a dark pool or whatever
where if you get a buyer and a seller you have a market place and so and they kind of were a little bit LAX about the way they set up the rules so I think there are now probably 70 different trading venues that people can go to okay if someone goes to those venues and they get disadvantaged it's not the platform's fault it's because what they're doing is They're trading look all you need is a buyer and a seller to have a market okay if you want no if you if you want no disadvantage if
you want Clarity uh and uh liquidity in the market you have to go where that exists and that exists on the floor of the stock exchange okay we the people who trade on the floor of the exchange the market makers the Brokers and the people that are the uh where the order flow comes from are not bad people They are not there to manipulate the market and to screw the young retail Trader all that being said it appears that I'm one of the only ones of the Old Guard who has taken it upon themselves to
include the young new community because that's who I am that is you know a lot of the brokers who I grew up with right I don't consider myself an Oldtimer I consider myself a long timer but a lot of the people who came up in the in in the Gard With me have retired they moved on they never made it past the old open outcry paper pads yes when the technology changed they left and retired I almost did I was the last broker on the floor who gave up his Pad when they said to me
Peter if you don't give up your pad and take the handheld computer you will not be able to trade on the floor tomorrow and I surrendered to the story because my story wasn't over yet and I had a lot more I also had I knew there was more That I wanted to do so you know this is a very big story that the answer to the questions you're asking you know that big play so you know there are there are multiple trading platforms um there are uh some some are thinner than others some don't have
the liquidity that people would want right um retail Traders should know to go where there are okay NASDAQ and the NYSC NASDAQ is a trading platform where a lot of the tech stocks went as I said in the Beginning of the conversation because of the capitalization issues okay there are no market makers on NASDAQ NASDAQ is a strictly electronic Marketplace so in the absence of public buying or selling the book is very thin it's very empty you may go try and sell a thousand shares of Amazon on nasdaq's Marketplace and if there's no public there
to buy the stock and you send an order through the system a market order that's an order without a limit to it it's going To go until it finds a bid MH now it may be down a dollar it may be down $5 right we've seen those things called flash crashes a flash crash is a time where somebody hits a bunch of buttons to try and dump stock they're just maybe maybe people were at lunch with these things but and so there was a huge gap in the liquidity of that stock at that time and
the guy sold it down $9 right uh and suddenly they think I just got screwed sorry to use that that Language but uh not necessarily the case that's the nature of the NASDAQ Marketplace the New York Stock Exchange which is what differentiates Us in the most wonderful way from all other markets is we have market makers market makers jobs are to create a smooth and active market market makers jobs are to inject liquidity into the marketplace they are there we have parameters right on the stock exchange okay in the absence of public buying the market
Maker has to buy it in the absence of a a public selling it the market maker has to sell it they don't have to stand in front of a an oncoming train but they have parameters where they have to be involved okay and those uh uh guard rails you know you ever gone bowling and they've got those things okay those guard rails are set by the SEC and the stock exchange they to protect the public from lack of liquidity in a particular stock look at the end of the Day uh uh you know when news
comes out in a stock and all the buyers suddenly evaporate because it's bad news and somebody comes in and they want to sell stock because they see the market selling off and there's no one there to buy it on NASDAQ they may it may gap down and they may end up selling stock at a disadvantage and lose $5 and suddenly they think that the world's out to get them when in fact it's unfortunately just the nature of trading On NASDAQ if they are to come and trade on the N it's we have a 7% rule
which means that if there are no public bids down 7% and the market itself or the indic itself or the stock itself trades down 7% we go into slow mode all right the electronic systems that we use now to trade will slow down to protect the public to protect the public from an onslaught of sell orders that 7% slowdown is there to identify is there news out is that was that a fat Finger why is the stock trading down so aggressively and where are all the buyers and we go slow so that we never it's
the fiduciary responsibility right of the market maker to do the best not for himself but for the retail Trader at 10% we go into stop mode if you'll remember during covid we had a number of days where the market actually opened and closed on the same tick because pre-market the market was already trading down more than 10% if You remember that it was probably late March early April beginning of May where we had that week where the the market over we trade 24 hours a day now right we know that the Spy the N the
the NQ a lot of these indices will trade around the clock and so when there's bad news that the world's coming to a to an end you know and everything is really uh and people are dying in the streets well everybody wants to sell and pre-market and aftermarket markets do trade so if You wake up in the morning and the Market's supposed open at 930 and the S&P 500 futures are trading down more than 10% then we open and close on one tick because we have to because the guard rails are 7% we go slow
10% we stop trading at 10% stopping trading gives everybody a chance to figure out what's going on is there bad news do I really want to sell my stock down 10% where are the bodies buried what's really going on Interesting and it gives everybody a chance to also step in now somebody who has an order to buy uh 100,000 shares of XYZ at 50 bucks and it's trading at 54 and suddenly there's bad news out in Co how comes and 50,000 comes in to sell and it hits the market and it's about to trade down
10% because there's no buy public buy interest right and the market stops trading because it's going to trade that it doesn't stop trading after it trades Down 10% they will they will stop trading when it's going to trade down 10% that gives an opportunity for people to be wakened up to the fact that the Market's about to trade down big and if you have an order anywhere from 50 to 40 you may want to put your order in there I right so I'm trying to paint you a picture where the stock exchange itself uh the
nysse and I can only speak for the NYC and I don't speak for the NYC I speak for my experience is that my Experience is that they do everything in their power to protect the retail Trader the institutional Trader you know the newcomer right in the best way possible where where so I don't want people to ever think that that it's a culture to screw the little guy it's not if someone gets disadvantaged there's probably some recourse for it I think it comes back to the blame thing you said that losing Traders would rather address
and and Point the fingers and scapegoat something else themselves conspiracy figure it's very interesting that we got this clarification as a Trader it's very simple you have to find an edge and then you have to have a mind so you can follow that edge but how do you know if you're performing correctly or not you have to know your data and trades is going to show you everything that you need beyond the service level win rates and performance and Equity curve it's Going to show you detailed reports it's going to be your back testing tool
strategy testing tool playbooks notes and it's going to be a full Journal it makes your journaling easier faster and more meaningful whereas if you were just documenting on Excel spreadsheets or taking screenshots on your iPhone you wouldn't be able to pull out the data that you need the correlations that the AI within Trad Zella is pulling out for you there's so much variety and utility Within the software that I think it's essential for any Trader so the link somewhere below is going to take you directly to the Trad Zella website I'm not getting paid this
is for you if you want it if you like it go ahead and explore it and probably you'll be using it for years to come I want to also understand because you you were talking about crashes that happened in the past and maybe other iterations of the word but right now we can see there's been a Rally we're at extreme highs obviously then after the elections the Trump rally so gold the stock exchange even crypto is is at highs when you mentioned when there's blood on the streets and the market at the lows it was
actually a better time to buy than sell now in the flip scenario when the market at the highs how do you prepare yourself okay so in order to answer that question in a responsible fashion I would like to give you a quick synopsis of 2020 till now And then go over 2024 for a minute because it's significant so as I described February 12th records highs across the board March 23rd records trading at their lows after the crash of covid the Federal Reserve is given the tools by whoever to use uh uh uh the ability to
print money uh in order to uh even out or protect markets economies and whatnot during the financial crisis of 2007 when we needed to bail out AIG and the banks and Leman went bankrupt And all that kind of stuff the Federal Reserve in order to prevent a complete crash of the market printed 800 Milli $800 billion dollar excuse me and put it into the market over an 18-month period of time to back stop all of the all of the companies that were going to crash or go out of business or go bankrupt it took nine
years for the market to get back to even after that injection of liquidity and after that crisis when covid came Along the Federal Reserve was confronted by a situation they had never seen before the world was confronted by a situation they had never seen before and they fortunately in my in my in my uh uh World they learned from the mistake of 2007 because they ended up printing3 trillion dollar injected into the market over three months because the difference between the financial crisis of 07 right was so significantly different than the covid Crisis that it
warranted that kind of severe and aggressive posturing in order to protect the country and the world from going under if we did not do that and this is not a political statement at all I'm a firm believer that if Jay Powell did not print3 trillion and back stop the market and get us and in in a way shorter period of time in three months we were back to even in three months okay think about that March 23rd was the crash $3 trillion do got thrown into the marketplace to bail out everybody plus stimulus and whatnot
by August 19th we were back to even and the market was up 20% in 2020 it was up 28% in 2021 so we did not now I'm a firm believer that if we did not do they did not do what they did that we would all on bread lines today oh and it's not a political statement right I believe that's reality right because if you Think about it it's a way different story the crash ofo 708 was a predatory lending environment where bad guys were selling bad products to people who could not afford them right
and um uh right I mean everyone should read about it because it's a fascinating story that they tried to sell credit and how do to people who couldn't afford it promising them that the market was going to go up and they'd be a don't worry you don't you're not going to have to pay it Back the markets by the time you need to pay it back the value of your house is going to go up and blah blah blah all that kind of they sold the mobila goods which was a lie the market did not
go up they all defaulted so what did they do they sort of put this this they ended up with a lot of bad debt right Morgan Stanley Goldman Sachs and so what did they do with it they had to offload all this bad debt so they put it in a Nice box with a ribbon and they sold it to someone else 50 cents on the dollar right some Bank in India some Bank wherever it was right they took it anybody in the industry will buy something for 50 cents on the dollar so when they got
that box pretty little box with a bow and they opened it they said oh no what did I do this isn't even worth 50 cents on the dollar I just bought a box of right what do I do with it so they turned around and sold it for 10 cents on the dollar to some unwittingly poor person right and that kept going down the line until someone at the end opened the box and blew the story to the world that wait a minute they just did this predatory lending and they just crashed the world's economies
right and then on top of it they were selling credit default swaps against it it's like if I if I buy insurance out on your life and I poison you that's what they did right isn't that what Goldman Sachs did they bought insurance against everything defaulting and then they were making it default yeah that's the crash of 07 let's go back to 2020 for a minute so we were in a wbor situation people were dying in the streets it was not an American thing it was a global thing right and suddenly we had the world
coming to a complete shutdown people were not getting on Planes Trains and Automobiles people were not going to maau to gamble people Were not going to school people were not going to work people were not cutting down trees to build houses people were not exploring oil to uh put on planes to go fly around the world because nobody was getting on planes the whole world came to a screeching halt it's hard even now to imagine that we did that we lived through it and it happened so in order to do that and I have a
lot of respect for Jay Powell because if he didn't have the for To do what he did we would all be on red lines today the whole world's economy would have collapsed so I'm a fan and it has nothing to do with politics I just know that that it was that's my gut feeling it's my opinion okay so we put $3 trillion into the market over three months back to even by August 19th up 20% 2020 up 28% in 2021 and then we came to 2022 with all of this printing of money and covid and
nobody going to work and The whole world coming to a stop suddenly we had inflation everything cost more people didn't want to go to work but it was not a result of Joe Biden or or any of these other things a result of Co and the printing of money it was a perfect storm in a way okay the only way to deal with this right how do you curb the inflation you have to take money out of the money supply how do you do this you raise interest rates cuz up till then we had zero
interest rates Nvidia Microsoft whoever was doing R&D whatever was able to borrow money for free anybody would happily borrow money for free if you offered it right you can pay it back when you're ready and you don't have to pay any interest okay um in order to take money so they just put all this money in the system we ended up with inflation how do you come back inflation one of the tools the FED has is to raise interest rates all those companies are less likely to borrow Right at that price and suddenly all that
all the money is being taken out of the system and that's a tool the FED has to curb inflation and what do you know it worked they raised interest rates 18 consecutive times until we went from zero to 5 and a half% and we were able to get inflation down from 8 a half% to two it was a perfect work right shout out to J pal po po po W amazing okay and this isn't political this is basic freaking economics I'm not I don't even Think I passed econ 101 but it's just the I I
needed to understand this to be able to do what I do now I needed to understand why the market is where it is and does what it does because it's a new world it's not I can't use the the analysis and the the my knowledge of past things because as of Co the world changed the puzzle went from being a 500 piece to a th and a very weird puzzle a lot of weird colors a bunch of funny shapes Right all that stuff so 18 consecutive interest rate raises now what do we have to do
in order to do that we have to start uh we have we we have to start we have to decide how to combat that and that takes something about cutting interest rates 2022 right when you raise interest rates to that level it's going to put pressure it's just basic economics 101 on the market so after two amazing 48% rally in 2021 the market had to take a pause it Had to sell off that's just the nature of markets it wasn't a crash it was a pullback it was a normal so that catastrophism that everybody talked
about the end of the world but no it was the normal cycle of a market after a 48% rally MH major inflation and all that stuff 22 we sold off now if what people do and it's happening a lot now is people don't understand that markets go up and they go down right I do uh a lot of Fox TV and uh Neil Kabuto one of the Big guys very close friend of mine he always ask me he says Pete you've been down there a long time is the market going to go up or down
and I say yes I'm the only guy who tells the truth the Market's going to go up or down yes that's what markets do in 2022 that's what it did after 48% it's going to sell off then we come into 2023 okay and they said okay we're going to have seven interest rate Cuts now in order to stabilize all this craziness That we just went through right and then we started looking at payroll unemployment all the other components of economies and markets and all that stuff and we realized that we don't need seven Cuts we
maybe need five or whatever 2023 was the 2024 sorry 2024 the first quarter of 2024 was the best first quarter since 1995 or something okay the rally that happened in the first quarter of 2024 was extraordinary One it was offshoot up 22 they sold them off in 2023 the market rallied beautifully Against All Odds because the Press was saying that we're going to have a recession there's going to be a depression markets can't handle this we just said up 48% down 20% the econom is not in as good shape as we think it is 2023
the market was solid it was up double digits it did its thing it was beautiful 2024 we came in and they thought we were going to have a Lot of interest rate cuts to stabilize the market the first quarter was so good we realized we don't need those cuts cutting interest rates is like pouring gas on the fire the market was doing really good on its own then April came along April came along because we had a normal pullback in the market in April the so the first quarter of 20 20 first quarter of 2024
yes was the best quarter since 2 since 1995 April was a normal sell off think about This Nvidia was trading at $108 February 2023 February 2024 Nvidia was trading at $925 that's crazy that didn't happen back in the old days right so April was a pullback what I and I'm saying all this and it's a long story I know it is but what I want people to understand is when markets do what they did in April of this year I can count on one hand how many pullbacks Consolidation sell losss we've had in 20124 there've
been five maybe six those have been better buying opportunities than selling opportunities the retail broker should know that when we have nobody wanted to pay 924 for NVIDIA in in April in in March at first quarter and when April it sold off 250 points they didn't want to buy it because their ideas oh my God if it's down 200 we must be in a crow the media was telling them Too we must be in a major cell UPS the end of the world dogs and cats living together it's going to be crazy when in fact
that was one of the best buying opportunities of all time retail Traders should know from an investment point of view that April of this year July of this year August 5th of this year the Black Monday in Japan the first week of September of this year and October 5th that's six times those were all gifts to buy stock Everyone should have a retail tra day trading account and everyone should have an investment account longterm there's a birdie who once told me and I'm not a financial adviser that if you as a young 22y old put
$250 a month into the S&P 500 from the age of 22 till your 6 mhm you will have $1.3 million at the age of 60 compound interest the 60 the 60y old thing may not be that sexy but 1.3 million is very sexy okay people need to change the whole psychology your Audience needs to understand that they need to invest in stocks and not stuff think about all the money we waste on stuff on on buying stuff on Instagram everything that we buy that the minute we buy it it goes down in value we really
need to evaluate whether we need that stuff think about it I put 250 a month into the S&P from the age of 22 a passive income of $1.3 million powerful $250 a month is what cutting back on Starbucks uh you know maybe one less Vodka at at the pool party in Miami uh you know I don't need the new iPhone 12 when my iPhone 11's not broken go out and buy some apple St instead everyone needs to change the whole psychology and mentality about investing in their future this portion of like investing I truly agree
with the power of it the only concern I have let's say is the age you said that people don't want to wait a whole lifetime to then have that million dollars which then makes the Shiny object syndrome of meme stocks and meme coins and crypto and the returns that they seem to provide becoming the new appealing thing and a lot of novice young investors end up there usually buying at alltime highs how would you navigate that with my generation usually leaning towards that but traditional finance and tradition investors just going for the S&P 500 the
the quick satisfaction we have we're in a generation now we want what we want what We want it right I will go on Instagram buy something for $22 and then spend 37 having it delivered to me yesterday because I have to have it urges last 20 minutes walk around the block have a piece of chocolate and don't worry about it and you won't end up buying all those things that are not valuable okay so this is not a get-rich quick scheme they need to develop a sense of discipline and consistency to be a good day
trader and a good investor in the market uh no One wants to wait a lifetime to make a lot of money but they don't have to there are successful day Traders and they are unsuccessful day Traders okay I will happily give you a wonderful scenario I have an academy called W Street Global Trading Academy we put together when Co came along 40 million new retail Traders came into the market we bu and Robin Hood invited all the people who were never welcome at this party to the party they did not include An educational component in
the story that's why me and my partner took it upon ourselves feeling the responsibility that with our experience it was our and my platform on social media I felt it was my responsibility to educate motivate and Inspire the new generation of traders to become responsible successful Traders it's very simple the tools to be successful I'll give you a quick analogy there's two kinds of gamblers if you've ever been to Uh I'm sure everybody here has gone to uh Vegas maau wherever you may go to gamble there's two kinds of gamblers there's one who goes to
Vegas with $1,000 they have a plan I'm going to I'm going to play I'm going to play my $1,000 if I make a th000 I'm going to walk away from the table I'm going to go have a steak at Ruth Chris take my kids to see Elton John and I'm going to go back to my hotel room and sit by the pool that's a That's a disciplined successful Gambler an unsuccessful Gambler without a plan goes in with the same thousand he's up a thousand he thinks he's got Diamond hands he's the greatest Gambler of all
time he keeps betting he's up 2 thou 3 th 4 th he doubles his bets the next thing you know he's down to zero he's been to the ATM three times he's out eight grand he's sitting out on the corner smoking Lucky Strikes and drinking Hy and he's afraid to call his Partner because he doesn't have enough money to pay the rent same thing about day trading a successful day trader will have a plan when they get into the market why am I buying or shorting this stock okay they're going to put a stop order
on every order they enter and never move that stop order if it comes toward them they're going to start to take a profit when they can not when they have to if I buy 100 shares at 50 I put a stop order in down 1% from the Price of the stock if it goes to 49 a half I got stopped out I move on to the next trade I lost 50 bucks I can survive that doesn't make me a loser doesn't make me a bad Trader I lost 50 bucks if it goes to 50 and
a half I sell half my position I raised my stop order to break even now I just made $50 and I cannot lose money on that trade that psychology that confidence of having made money and not be able to lose money is the most Wonderful thing in the world that confidence that new rearrangement of your mind will make you a good Trader it goes to 51 I sell 25% more of my position I raised my stop to 50 and a half where I'm now locked in a half a dollar profit and I do a bracket
order or a scaling stop order whatever it is and I get as much out of the trade on the upside as I can that's a successful Trader an unsuccessful Trader will have no plan they're just going to buy it Because Uncle Herby told them to some signal service told them to a fomo hype hope not successful trading strategies when they buy stock they will not have a stop order they'll use as mental stop I don't even know what that is okay they won't take a profit they'll turn a winning trade into a losing trade they'll
watch it go to 51 they'll think oh my God it's going to 55 it's going to the Moon they'll never take a profit they go get a coffee it's trading at 48 What do they do then they average into the stock they buy more it goes to 46 they buy more it goes to 44 they can't take the pain anymore they sell it inevitably the stock goes back up eight bucks they blame the market maker three losing trades one of the great tools of Wall Street Global Trading Academy is when you're having a bad know
when to stop when you're making money and know when to stop when you're losing money the irresponsible losing Trader Will have three losing trades they're going to Revenge trade they're going to double up I got to make it back I can't accept the loss okay and in our book in our school three losing trades I lost 50 I lost 50 I lost 50 I turn the machine off I go home I'll come back from a losing day I'll come back from a losing week but I will not come back from a $50 loss becoming an
$8,000 loss okay so these are the two I just gave you the scenario of a successful day trader and An unsuccess these are five rules that you could write on a piece of paper put it on the wall put it on your computer duct tape it to your dogs behind but watch it read it look at it right hire someone for 50 bucks with a 2x4 every time you do something silly let them smack you in the back of the head there we go you've been very generous with your time I want to wrap up
the episode with you mentioned earlier on you have a specific strategy something about day Close I didn't quite fully catch right if we could summarize that uh as we wrap up the episode sure so as a broker on the floor of the stock exchange I have access okay what's the best way to describe this uh okay imagine that you're a hedge fund you're an institution you have a million shares of IBM to buy in a world where the market goes up and down it could be down a th points at 11 it can be up,
1500 at 12 uh how do I go back to my customer and tell them uh why they should use me as opposed to just using an algo or using the system as a broker a human being on the floor of the stock exchange in a world that's being taken over by technology I need to give my customer a really good reason why he gave the order to me okay and not okay so imagine I'm a a large institution I have million shares of IBM to buy what would I do with it me as a broker
who's been doing This for 40 years I'd buy okay large investors want to put their order flow where there's a lot of volume because otherwise people will see what they're doing they don't want to be front runed they do not want to do that so on the opening bell of the NY there's a lot of volume on the closing bell of the NY there's a lot of volume so they will often embed their order flow on the open and the Close if I have a million shares to buy IBM I'll buy 200,000 shares on the
opening I'll put 400,000 shares in an algo 10% from 10:00 to 2 o00 and then I'll put 400,000 to buy Market on close meaning I will execute that last 400,000 on the closing print that way I can go back to my customer and said he goes what' you do for me Pete I'll say you know I was involved everywhere you know the world we got two Wars going on there's no election Market's been up and Down it's been crazy so I bought you a couple hundred on the opening I bought you know 400 th over
the day so I got you some nice prices you know track the consolidation of the global markets and then I bought you 400,000 on the close you know say great job I'm really appreciate of that me Peter tuckman as a broker on the floor of the exchange I get to see all the order flow for the closing bell at 2:00 it's not inside information it's Information so it's a matter of information is a funny thing it's not it's just what do you do with the information everybody does something different with it I've been doing this
for the long for a long time so as a broker on the floor okay I am able to see that order flow for the closing bell so I built a strategy 16 years ago where so I know that markets move up or down as a function of the dollar notional Value of the each stock a million shares of Visa is more significant in moving the market than a million shares of Carnival Cruise based on its price okay so I've worked and I built parameters okay uh so I know that every $400 million there is to
buy or sell is going to start to move the needle okay so at 2:00 and this is kind of proprietary but it's also something I cannot disseminate to people except other broker dealers right so unfortunately I can't share it With retail people however but it's what I do so at 2:00 in the afternoon my handheld computer that the stock exchange gives me populates with all the orders for the closing BT okay okay so I get to see that I will put out I have a bit of a spectrum e brain I will look at those
the orders on my handheld and I will estimate how many dollars there are to buy your cell at 2:00 MH then I will have my son and five other people who work for me input all these imbalances for the closing bell into a spreadsheet what's in imbalance well 500 out to buy 300 out to sell means 200 out to buy 300 paired off make sense yes okay so all the orders come in at 2:00 they are updated every five minutes until 4:00 okay so I take that information That's given to me on my handheld and
I build a spreadsheet from 2:00 until 3:50 okay at 350 this information goes out to the public not just the regular public anybody who subscribes to Bloomberg okay so I have the information before most people uh not before other Brokers on the floor of the exchange everybody who has a seat on the exchange gets to see this now it's not it's it's not I'm not at any advantage Because the number is updated every 5 Seconds so a billion to buy at 2:00 can be a billion to sell at 2011 I see right so I need
to be incredibly accurate with that number okay and impart the information to my customer and use it and um and trade the market accordingly okay through my experience I found that for every $400 million there is notional dollar value to buy or sell it will affect and move the market so what I do Is from 2:00 to 3:50 I will build this spreadsheet and be very accurate my son is a bit of a idiot savant he can type 347 stocks in 3 minutes and 16 seconds right it's a matter of it's a function of accuracy
who's the first person on the on the train and if I'm the first person on the train with an accurate number and I know the correlation between the the dollar value and the Spy I can trade the market from there and so not to get more specific than that I am Able to trade the market around that information and that's what I do it is a strategy unfortunately it's not a uh disseminable strategy uh because it's just information privy to those that are on the floor of the exchange but it is you know if retail
Traders your audience are wondering why the market kind of does a wild move around 2:00 it's because that's when our handhelds populate and once again at 3:00 also the market will see you'll see a move if I Can give anybody a little in a little information that you know the so that they feel like I'm giving them something special besides a little chocolate is that at 3:00 and at 3:30 one should be on the so usually the market make a big move at 3 and 350 and your retail audience should know that you should rather
be on the same side of the move that the market does at 3 and 330 rather than trying to be uh counterintuitive right so when a market Sells off as a day trader our first impulse is to be a buyer right when markets sell off you want to be a buyer but you need to a buyer at the right level MH right you don't just buy stock when a Market's selling off because it's down 20 bucks let's quick scenario GameStop went from $2 to 483 and back to 151 when it was trading at 483 I
called my uh I was trading it every day that day uh it stopped trading 29 times that Day okay the day of the the mem that was one of the first meme stocks it was trading at 483 and I uh called my partner and I said David David is a technical analyst right at Wall Street go he's my partner I said Dave where where where do where do we buy GameStop it went from 2 to 483 it's trading down it's trading at 390 at 370 where is their support and he said to me the next
level of support is $151 and I said are you you got to be Kidding me right so you're telling me it's going to go down 300 bucks before it hits support and he said technical analysis moving averages pivot Points RSI is telling me right that the next support in this stock is 151 bucks sure enough it went from 483 to $150 and $50 and 34 right it only it went down $300 and only broke David's price by a quarter and it went up $37 mhm that's a shout out to technical Analysis that is the power
of technical analysis why does it work for lots of reasons a lot of it is because a lot of people are reading the same info and if everybody sees the the inter relationship of moving averages and RSI and all of that stuff and you see where the support and resistance are that it it's fulfills its own prophecy makes sense because everybody's on the same page Mak sense yeah of course pet I want to say that we have a lot of fans Waiting for you in the summit so we you've been very generous with your time
pleasure uh just before as we head off together back to the summit to the camera any final pieces of advice sure first of all I I invite anybody of your audience to go to WS gta.com and we do live free uh master classes every month uh uh if you go to the website you'll see that we have an amazing course and a boot camp that's incredibly affordable accessible and Fun um there's a money back guarantee there's a payment plan there's all these things our secret sauces that we coach and Mentor all our students from all
over the world every Thursday night nobody does that so for me I could be doing a lot of things I could probably be vacationing except that I'm a workaholic and I love what I do so I wanted everyone to know that it is really important to me to share everything I know with you all Who are the next generation of the investing and trading Community because this is way too much fun to keep a secret there you go right and and and so I've committed myself to that right I want everyone to journal their trades
I want everyone to know they learn more from failure than success I want everyone to know that to be humble don't be stubborn find a mentor or a coach if if it's me I I just bring it on I am up to the challenge to change everyone's Life in a positive way that's why I'm here that's why I'm still doing what I do there we go Pizza thank you very much a true honor so thank you for joining us on the show my honor thanks guys there we go
