Investing 101 at the New York Stock Exchange with The Einstein of Wall Street Peter Tuchman

This episode provides an in-depth exploration of the stock market, investment strategies, and insights from Peter Tuchman, renowned for his deep knowledge and expressive persona on Wall Street.

1. Stock trading has evolved significantly, with technological advancements replacing open outcry systems.
2. Education and awareness are crucial for new investors to navigate the complexities of the stock market successfully.
3. The role of a market maker is critical in maintaining liquidity and stability in the stock market.
4. The episode highlights the potential risks and rewards associated with both short-term trading and long-term investing.
5. Peter Tuchman advocates for responsible trading and investment, emphasizing the importance of strategy over emotion.

1: Introduction to the New York Stock Exchange

Nicole Lapin introduces the topic and discusses the historical context of investing and the role of the NYSE. They touch on the evolution of trading practices over the years. Nicole Lapin: "When the New York Stock Exchange was established, the very first thing it did was shut people out."

2: Deep Dive with Peter Tuchman

Peter Tuchman shares his journey on Wall Street and explains the transition from open outcry to digital trading, emphasizing the importance of market makers. Peter Tuchman: "I am the most photographed guy on Wall Street... it's important if we have a successful day."

3: Retail Investing and Technological Impact

The conversation shifts to the impact of technology on retail investing, including the rise of trading platforms and social media's role. Peter Tuchman: "Suddenly anybody with an iPhone and $10 could suddenly be a trader or an investor in the stock market."

4: Advice for New Investors

Tuchman provides practical advice for newcomers to the stock market, stressing the importance of learning the basics of trading and investing. Peter Tuchman: "It's not about how much money you make, it's about how much you keep."

1. Understand the basics: Before diving into trading, gain a solid understanding of how the stock market works.
2. Start with simulations: Use stock market simulations to practice trading without financial risk.
3. Choose reputable sources: Learn from credible financial education sources to avoid misinformation.
4. Set clear goals: Determine whether you're trading for quick profits or long-term investment growth.
5. Implement risk management: Always use stop-loss orders to minimize potential losses.

Nicole heads to the New York Stock Exchange to talk with Peter Tuchman, AKA The Einstein of Wall Street. There, they confirm the rumors: the Wolf of Wall Street days are over.
Peter reveals what it's really like working on Wall Street, how to protect yourself from scammy finance "pros" and how to navigate the market successfully.

You can find more on Peter (including some of the famous NYSE photos) here: https://www.einsteinofwallst.com/

People

Peter Tuchman, Nicole Lapin

Companies

NYSE

Books

None

Guest Name(s):

Peter Tuchman

Content Warnings:

None

Nicole Lapin
When I'm not hosting this podcast, I am writing books. But it is really hard for me to write when I'm at home. So I like to find remote cabins in the middle of nowhere to just hang out and write. But I hate the idea of my house just sitting empty, doing nothing but collecting dust and definitely not collecting checks. And that's why I'm an Airbnb host.

It's one of my all time favorite side hustles. Other popular side hustles are awesome, too, don't get me wrong, but they often involve big startup costs. By hosting your space, you're monetizing what you already have access to. It doesn't get easier than that. And if you're new to the side hustle game and you're anxious about getting started, don't worry, because you're not in this alone.

Airbnb makes it super easy to host. I mean, if I could do it, you could do it, and your home might be worth a lot more than you think. Find out how much@airbnb.com. Host I'm Nicole Lapin, the only financial expert. You don't need a dictionary to understand.

It's time for some money rehab.

When the New York Stock Exchange was established, the very first thing it did was shut people out. Seriously. In 1792, all the reputable stockbrokers in New York got together to sign what they called the Buttonwood Agreement. A truce, basically, that set out to make investing more trustworthy by keeping con artists who claimed to be stockbrokers outside the exchange exchange. At the time, this was a pretty significant problem.

These con artists would basically sell people stocks based on flat out lies about the investment opportunities. And the prevalence of this made Americans skeptical about the whole investing system. So brokers started to trade behind closed doors of the stock exchange to keep out the scammers. But closed doors didn't shut out only the bad guys. It shuts out everyone.

Since the buttonwood agreement, retail investors don't have the same access to the stock exchange as brokers do. Until today. In today's episode, I actually go to the New York Stock Exchange to chat with Peter Tuchman, a stockbroker at the New York Stock Exchange who has been called the Einstein of Wall street. And he definitely has the personality to back up such a big reputation. I wanted to ask the most common questions about how stock exchanges work, who's who on Wall street, and what a seasoned broker is anticipating to be the biggest investing opportunities of 2023.

I had spoken with Peter Eons ago when I was at CNBC and have been a huge fan of his ever since. But this conversation exceeded even my high expectations, which is rare on Wall street. In fact, it exceeded those expectations so much that I gave Peter a whole podcast on our network, money News network, to be the first to hear more about the official announcement and to hear more about the show. Of course. Follow Money News Network on Instagram, it'soney News.

Well, let's get to the main event. Here's my conversation with Peter. Welcome to Money rehab. Thank you. Thank you.

Peter Tuchman
So let's start at the beginning. Okay. When did you start here? I started here 137 years ago. I went to high school with Alexandra Hamilton, and I was here for the inauguration of George.

He's outside. Wonderful. It happened right outside the building. I started here in 1985. When did the Einstein schtick come about?

The Einsteinstick? So I, it's actually Erin Burnett, who is on CNN, and she used to be with a CNBC on the floor, and we were friends. And Mark Haynes, who was another man, he's unfortunately passed away. They used to, they used to call me Einstein. And I think it was really Aaron who started.

And they would always joke, Mark Haynes would sit outside smoking a cigarette every morning on the fire hydrant. And when I'd walk in, he'd go, hey, Einstein, you're having a good hair day. That means that the market's going to be up today. But you are the most photographed guy on Wall street. How did that happen?

I am, you know, look, the floor was not a place where there was a lot of media back in the old days where there was just no place for it. And there was always a couple of straight pictures that came out. There was a guy named Alan Gershwitz who they called the market dude. And whenever they took a picture, he was the one. And then in 2007, I believe it was, I'm not sure.

It was one of the biggest down days we had. He was about to retire, and he sort of, they, they took a photograph of me, and that day they interviewed him and he said he was retiring and he was going to sort of pass the baton to me as the next market dude. And that, that picture, it turned out, was on the front page of the daily News. And then sort of, and it was a big hit. It was me throwing my hands up in the air and, and then the post ended up interviewing me the next day to see, like, who is this guy?

What does he do? Is he really the next market dude? And that kind of started this deluge of photographs that ended up with Reuters and Getty Images and Associated Press. So just to clarify, these are the pictures. Like, if you're reading a story about the market, these are the stock photos that are used, correct?

Absolutely. And they are. They are real photos. You know, they're not, you're not allowed to pose for those photos. And so that's real emotion.

You know, I realize I trade other people's money, and so it's important to me if we have a successful day. And I'm a very emotional guy. I'm adrenaline driven and I, you know, and I love the energy and I love what I do. So those emotions tend to be real. So on an up day, you'll see emotions.

On a down day, you'll see emotions. And, you know, look, media loves to capture excitement and faces and emotion, right? So I'm sort of the trauma. Exactly. Trauma, drama, trauma, excitement, you know, depression and all of it.

And I'm the most expressive guy down here. So I became the face of Wall street. And you bring the energy of the olden days, as you said. So when I started on the floor of the Merc, there was open outcry trading. Everybody was yelling, everybody was screaming.

I think a lot of people think of the stock exchange like that still. They don't realize that it's quiet vibes, right? So you would give anything to have open outcry trading come back. But can you explain why that left and what the heck they were doing back then when they were yelling, screaming, making motions? So if anyone's ever been to an auction, look, an auction market is, you have buyers and sellers, you've got reasons why would people are willing to engage in that?

The stock market is where we trade thousands of equities, right? So open outcry is basically screaming and yelling. And that kind of engagement is what happened. It was crazy. It was wild.

You have to realize that when somebody's buying something, depending on their intent behind it and why they're doing it, there's a sort of, you know, they're taking a position, they're spending money. So there's emotion behind it. There's intent and cash is being spent, so there's excitement and emotion around it. I love that kind of energy. And I would bring it back in a minute if I could.

So you're talking about other markets just negotiating. It's a negotiation. And there were hand signals, too, like almost like in baseball. So the New York Stock Exchange did not use hand signals as much as the american stock exchange. Right.

So there was american stock exchange exchange, New York stock Exchange. And then you had the Cboe. You were, you were trading commodities, right? You guys traded orange juice and plywood and gold and oil and stuff like that. You were actually in the pits, open outcry, doing stuff like that here.

We did use hand signals, but it was more screaming and yelling. The hand signals that people think of were done on the american stock exchange. So the way the american stock exchange, which is a few blocks down from here, that traded equities the same as we did, but the way the room was set up, there was a balcony on the top and the pits were down below. And so you wanted to explain to your trader who was in the pit what his instructions were without telling anyone next to him what you wanted to do. Because if everyone knew, it's like if you walk out to a poker game and you've got four aces and you put them forward, everyone knows you have four aces, no one's going to play against you.

So the same thing in an auction market, there's certain things that you hold close to your cuff. So there was a way to get information down from the balcony to the pits here. We used phones, we used squads, and we would run back and forth and sort of scream and yell and our voice. I'm sure you won those. I did.

I did have the, I was the loudest, most obnoxious trader in history, for sure. So when somebody says they need, like, a stockbroker, they're probably thinking of a financial advisor who's working for them. A broker isn't working for a customer. Correct. So in the old days, a stock broker who represents a brokerage firm, whether it's Merrill lynch or Smith Barney, the old school brokers were the guys who were your financial advisor who took your money, and they created a portfolio for you and traded it.

Those were called stock brokers. We are traders. So those guys would actually send us orders right down to the floor, and then we would get them as brokers. Once I received an order to buy 100,000 shares of Disney, I would have to go to the market maker who traded Disney. Now all the order flow from around the world who want to trade the Disney stock would go through that market maker.

I would then walk in and say, hey, Joe, how's Disney? And he'd say, we've got three buyers. They're willing to pay a quarter. We've got a seller at three eight and a seller at a half. Hey, Peter, what do you want to do?

And then I would open up my, either, depending on what my instructions were. I would either say, I'll take stock at three eight and I'll bid a quarter. It would then initiate or commence the negotiation. And I'd look at the other buyer and say, hey, guys, I'm a buyer of 100 thou. What do you want to do?

Maybe we should pay a half. And so we would together start talking to sort of engage each other to find out what's everybody want to do. I mean, it was sort of a wonderful, you know, we may spend a minute there and we'd be aggressive buyers, and we'd spend an hour there talking to our buddies, deciding what to do. It's sort of like a poker game that way. But the market maker was there to orchestrate putting buyers and sellers together.

You keep saying market maker, if somebody's listening and doesn't know what that is, can you explain how that works? Sure. So there are brokers. Brokers represent institutions or customers, high wealth people, or hedge funds or institutions. And these are not financial advisors.

Not at all. These are people, boots on the ground, traders on the crowd at the point of execution. It's important to make that decision. A broker and a trader is the person who actually executes stock. A market maker is basically, it's a totally different job.

They represent the brokerage, the market making firm that they work under. They are allocated stocks by the New York Stock Exchange, and they're there to create a smooth and active market. So you think of it as a broker trader. I'm a passenger on a plane. If you think the market maker, he's the pilot.

Okay, so the pilot of the plane is there to create a smooth and active market. If you run into turbulence, that market maker will step in. If there are three sellers and two buyers, the market maker will step in and be the third buyer to consummate a trade. If there are three buyers and two sellers, the market maker will sell stock. When there's nothing but sellers and there are no buyers, the market maker needs to step in to stabilize the stock.

If there's nothing but buyers and no sellers, the market maker, that's his job. He's there to create liquidity within a stock, and he buys and sells all, all day, representing the corporation to keep the stock smooth and active. And so if somebody is listening to this and they want to start investing, they would want to look for a financial advisor who almost like a dietician, versus a broker who is like a butcher. So the dietitian is working for you and your goals, and then the butcher. Would be there to make your meal for you.

Type of thing. Just sell you the meat. Right. And not say, hey, you should have some vegetables. You're not going to butcher.

And he's not going to say, like, actually have some broccoli. Exactly. So, yes, you're absolutely right. If I want to invest in the market, and it's not something I want to get involved in personally, I would go out and find a financial advisor, and that's really not an easy thing to do. They're all different kinds of them.

And so I beg everyone who's listening, who's a first time investor, to do your due diligence, find out who these people are, go to one of the more established ones. If you're sort of trying to trade and create a large portfolio, what's happening now over the last number of years is a lot of people, because stock market has become cool. Whether it's COVID, the meme stocks, the free trading apps, the democratization of the whole investment community, you have to realize that what happened for 100 years was there were barriers to entry for most people who did not have money to get into the stock market, right. You had to become an accredited investor in order to invest in the stock market. That means to be very particular, meant that you had to, if whatever money you were investing, if you had to actually sign a piece of paper that said 100% of your investment, if you were to lose it, would have no effect on your standard of living for five years.

Now, I don't know that many people who can actually say that, because that means you're a rich person, right? And that's why there are only very wealthy people involved in the stock market. And that's kind of a shame, right? So your basic Joe or Mary on the street could not actually invest in stock. What ended up happening during COVID was it was this phenomenon, this movement, right?

Whether it had to do with COVID everyone was at home. Wall street bets or Reddit, whether it was Robin Hood or webull, whatever ended up happening was there was sort of this perfect storm that happened where suddenly anybody with an iPhone and $10 could suddenly be a trader or an investor in the stock market. And I think it's a good thing. You know, what's ended up? How?

Well, you know, I was going to ask. Well, it turns out it's a great thing. Not everyone's embracing it. I'm embracing it because at the end of the day, if it will, these people will be the future of the investment community. And, you know, the stock market has been a bit of an exclusive and now, it's very inclusive for anybody who wants to invest in the market, and that's a good thing.

However, I knew there was a. But. However, what's super important, which is sort of what I've taken on as somebody who's been here for 137 years, is that everyone who was given an iPhone in $10 and the access to the stock market, they were not given the rulebook or the playbook on how to do it successfully. So everybody who bought stock on May 20, 2020, with their stimulus check, when they were, you know, quarantined at home with COVID and they bought GameStop or AMC at $2, $4, $10, and they watched it go up, and they suddenly were posting pictures of them on their Bugatti with $10,000. Did not realize that the stock that goes from two to 483 can go right back down to two.

And if you don't sell it when it's up at 400, it's not about how much money you make, it's how much you keep. So that rulebook, it's like, if I wanted to become a pilot, I could not go to Teterboro. Well, I was gonna say it. I'm reading your mind. I don't know how this is crazy.

Nicole Lapin
Esp. It is. To me, it seems like you're just letting somebody in the cockpit without. It's a hundred percent like that in a nuclear reactor. Just because you can, doesn't mean you should.

Peter Tuchman
Exactly. If you got in and you got out and you made a bunch of money, I wish you the best, because don't they hate. It's a beautiful thing. But if you didn't and you thought you suddenly had diamond hands and you were not humble about the fact that you know, and honest about the fact that you actually ended up losing money and not making money, and you did not do the homework, and you did not get that memo that stocks not only go up, they do go down, and that you need to learn the tools to make yourself a profitable trader and negotiate this market successfully, well, then it's a shame, because nine out of ten, this is a fact, nine out of ten people who attempt day trading do not succeed. And so I sort of took it upon myself with my partner, David Green.

Right around the beginning of COVID we saw this influx of 40 million new retail traders, and we knew that nine out of 39,000,900 of them were not going to make it. We thought, what a great opportunity to share what we know. We've learned about technical analysis, risk management and the rulebook, right? And share it with them. And that's what we've done.

Nicole Lapin
Hold onto your wallets. Money rehab. We'll be right back. Money rehabbers, you have money hidden in your house? Yeah, just hiding there in plain sight.

Okay, so I don't mean you have gold bars hidden somewhere in walls, treasure map style, but you do have a money making opportunity that you're just leaving on the table if you're not hosting on Airbnb, it's one of my all time favorite side hustles. By hosting your space, you are monetizing what you already own. It doesn't get easier than that. For me, hosting on Airbnb has always been a no brainer. When I first signed up, I remember thinking to myself self, you pay a lot of money for your house.

It is time that house returned the favor. And to get real with you for a sec, I felt so much guilt before treating myself on vacation because traveling can be so expensive. But since hosting on Airbnb, I feel zero stress for treating myself to a much needed vacation because having Airbnb guests stay at my house when I'm traveling helps offset the cost of my travel. So it's such a win win. I mean, if I could do it, you could do it.

And your home might be worth more than you think. Find out how much@airbnb.com. Host do you ever get FOMO fear of missing out well, do you ever get FOMO to Peter fear of missing out on the perfect hire? If so, I have the antidote. It's LinkedIn jobs.

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Terms and conditions apply. And now for some more money rehab. Well, you did two interesting things. You made this distinction whether you're a trader or an investor. Correct?

Peter Tuchman
Super different things. Super different things. We are teaching them to be traders. An investor is someone who makes a long term bet in the market, investing in a company that they like. Responsible investing.

But people invest in a company because they like the product, they like their guidance, they like what they're doing from a profitable point of view. I like Nikes. Everyone's wearing them. I'm going to buy Nike. I love Apple.

Everyone's got an iPhone. I think the company's going to do good. I want to be in it for the long term. That's investing. Trading is making short bits of money on a daily basis.

So at the end of the day I have make some green. At the end of the week I'm greener. At the end of the month I'm greener. That is day trading. That is scalping.

People call it scalping whether it's day trading or not. It's making small bits of money on short term trades, whether it's a minute, five minutes, an hour or a day, every day, trying to become profitable on a daily basis, creating some disposable income, totally different experiences, totally different mindset, totally different thing. And who is trading for versus long term investing? So in the old days you had money, you gave it to a broker, they did the trading for you. Then people sort of took it upon themselves.

They have a good job, they have a 401k or what it may be. They make a judgment, right? People who love the stock market, who love investing will make a decision that they want to invest for themselves. They'll do their homework and it takes a lot of homework to analyze a stock, what products are on the pipeline, what the guidance looks like going forward, and they'll invest in a company for the long term. A trader is a young person or an older person who likes the action, right?

You know, you know, some people are gamblers, right? Some people like to go to a sports sport game and just watch the game. And then some people like to bet on the game. Well, that's people who come to the stock market and who want to bet on the market. They want to bet that GameStop goes from two to 20 or Nike goes from 166 down to 80 or whatever it is.

It's people whose Wall street has gotten their attention, the accessibility to trade. The market has opened up. They've been given the availability to find a free, no charge trading app where they could buy and sell. The Internet has exploded in information and people who are sort of false advisors and fake advisors telling everybody what to buy and sell. And those guys are bad actors.

So be careful if you're following a lot of them, right? Well, no names, right? I'm not going to mention any names. But look, let's think. Everyone's seen the movie Wall street, the Wolf of Wall street.

Who was that based on? Jordan Balfour. That was based on, he's a bad guy. And I don't like to diss anybody, but what Jordan Balfour did back in those days was he did what's called a classic bump and dump. He would buy a bunch of stock, then he would have his little minions, he'd have his little minions go out and call everybody and say, we recommend XYZ, when they've already taken a big position in XYZ.

And the thousand people following them would go buy it. And when they were buying it, he'd be selling it. There are a lot of people on the Internet right now who for $7.99 or $25 a month will sell you price stock targets, stock picks and financial advice. And what they do is they create a huge community by creating all this false enthusiasm around a company that tell you this is a great one. And look at that stock.

And la la la, they'll have a community of 5000 people. They'll go out and buy a bunch of shares for themselves. Then they'll put it out on Instagram or on Discord or on Reddit and say, I like XYZ, I like whatever. And then everyone rushes in to buy it. And when you're buying it, they're selling it, and the stock will go up on big volume and then you'll see it go down.

So those are the bad actors. In the space, trading has often been synonymous with getting rich quick versus long term investing, which is like this slow, steady burn. Do you recommend people are long term investors as well before they start trading? So I cannot really answer that. I'm not allowed to talk about individual stocks or be your financial advisor.

But I, having analyzed the markets on a day to day, hour to hour, week to week, month to month basis for as long as I've been here. Over time, stock markets have gone up, right. The S and P has outperformed most everything over the last as many years as it's been here, every crisis and crash. And I don't use that word lightly because we've really only had a few, even though people feel if the market's down 1000, that is a crash. And that's really not the crash of 29, the rough times of the seventies, the crash of 87, the bubble of 2000 and COVID, those were legitimate crashes.

Over time, those have been. Were better buying opportunities than selling opportunities. So I think everyone, young people. There is a saying that if a young person at the age of 20 were to put. I'm saying this hypothetically, if they were to put dollar 250 into the s and p 500, and I'm not recommending this over every month, then by the age of 40, they would have $600,000.

At the age of 60, they would have $1.6 million cost averaging. Right. And so that would be investing in your future in a financial instrument that, over time, has proven to be successful. So I think everyone should do that. Hypothetically, people should invest in stocks and not stuff.

Okay. This is one of my messages, which I learned, which I learned from a guy down here on the floor, which is, we don't. Look, we are the greatest consumer. Consumer generation in history. We always have to have the next sneaker, the next iPhone, the next this, the next that.

Even though if you look in your closet, we have so much stuff that we don't really use or need. If I could say anything that would sort of inspire a young person, that if your iPhone 13 is not broken, you may not need the iPhone 14, maybe take that money and buy a couple of shares of Apple. And I'm not recommending you do that. I couldn't agree more. In my last book, I talk about how I always wanted this Tiffany bracelet.

Growing up, I couldn't afford it. And when I finally could afford it, I ran out to the Tiffany store in New York, and. And I went to go see that exact bracelet, and I was like, this is the time I'm gonna make it. And this is gonna feel like this status that I finally got this bracelet. I was so jealous of all these other girls wearing.

Then I left, and I called my broker at the time, and I bought Tiffany stock instead. There you go. So we're totally on the same wavelength, and I. That's the greatest thing that people can do. I agree.

But if they're investing for the very first time, do you think it's wise to buy individual stocks versus you can buy in, like, a stock to the s and p 500 that you mentioned, you can buy into an index instead. People would ask me in the middle of the pandemic, a, should I sell when everything's in the pooper? No, I think we can agree on that. Correct. Buy low, sell high.

Correct. I think we can agree on that. And second, should I buy Zoom? I'm a first time investor, but Zoom, I hear, is crushing it. So should that be my first foray okay, so zoom.

That nobody really heard of before. The pandemic went from 20 to 400, and it went right back down to 20, basically. So the bottom line is if, and I can't really tell you what to do, but look, an individual stock will go up and down on the profitability of the company and whether they're doing good things or not doing good things, and they are basically at the risk of something bad happened. The market changing, a global pandemic, a war, whatever they're connected to, a defense company does better when we're in war. You know, an airline company does poorer during a pandemic.

An e commerce company goes up during a pandemic. So you need to sort of get an oversight of what the world's doing at a time. But investing in companies that make money, no matter what's going on, is probably a good thing to do. Exposure to one company, you are at risk if something goes wrong with that company. And that can happen in this crazy world from 1 minute to the next.

In this market, we go up and down 1000 points in an hour. Right. You can be in a bear market in the morning and a bull market in the afternoon. What you just said was there are these things called financial instruments like the s and p 500, which are 500 stocks put together in a basket, which gives you this global footprint of basically the american economy and global economy. And so if you want exposure to all that and you're a buyer of the world and life, then probably an investment in the S and P 500 is a good one.

Okay, so what you're suggesting is kind of like the shaded part of that Venn diagram, almost like trading and long term investing or cautious, responsible investing. Sometimes when you think about trading, you're thinking of this get rich quick schemes. But what you're advocating is trading responsibly. Okay, so it's, it's sort of the middle shaded part. Yes, absolutely.

Look, not everybody's going to be, look, as I said, suddenly the barriers to entry for a trader and investor are down. And anybody can do it because you. Can day trade like so called responsible index funds. Absolutely. You can day trade stocks, you can day trade funds, you can day trade ETF's.

It doesn't matter as long as you don't trade on hope is not a trading strategy. Fomo fear of missing out is not a trading strategy. Uncle Herbie on the Internet telling you to buy something is not a trading strategy. Fundamental analysis is kind of risky in this crazy world we live in because the markets are so volatile markets that go up and down as volatility, volatility as these do, one must know the rules about having a stop order. Risk management, money management, the psychology of trading is a really important thing.

So you have one little person on your shoulder going, I'm a genius. I got diamond hands. I'm going to make a million dollars. And then there's the other one who's more conservative, saying, I'm up $50, let me take a profit. I'll get into another trade later.

So that's the paradox. And so I beg, feed people to err on the side of caution and less risky in a market that goes up on a day, you know, up thousands of points at any given time. Devil, you mentioned these downturns and you listed them. Do you think we could go into one? And if so, when we were all watching during COVID and the market stopped, or these breakers, you were here.

Sure. Sure. I was here. Sure. And can that happen again?

And how do you prepare? Ok, markets go up, markets go down. We've learned that. Right. A lot of the anxiety and unknowns about what's going on globally are still very much alive.

Markets don't like unknowns. They don't like anxiety. So the market, if you ask me, is the market going to go up or down? The answer is yes, and most people won't tell you that. I told that to Neil Cavuto once, and it was like the hit of the day, because no one's saying that.

Everyone's saying it's going here, it's going to go there. I don't predict anything. I have no opinion it's going anywhere. Circuit breakers, let's talk about for a minute. So we have here on the stock exchange, if the market goes down 7%, we slow down.

If it goes down 10% on the dower, the S and P 500, I don't know the particular numbers. We actually stop for 15 minutes. We give everybody a chance to see where the bodies buried, what's really going on, kind of digest the news, and then we reopen. If we go down again. Timeout.

It's a timeout. Exactly. And if you have a kid, you know that a timeout can do only. But not everything. But we're in a game.

Yeah, yeah, exactly. And then if we go down again once again, then we stop for a little bit longer. And then basically what you don't want to do is to disadvantage the actual companies and the investors to have an overreaction that may be out of the, out of the guardrails. So we end the episodes with one financial tip you can take to the bank. You have, I think, a whole bank of tips you can take to the bank.

But if you could pick just one. I think it's important to invest in stocks and not stuff we love to buy things. You know, I'm a firm believer, and it's not something I've been that great at. But if you see something you really love, walk around the block for 20 minutes before you go in and buy it, like you did with that tiffany bracelet. You know, we always think we need something just because we want it.

And that may not be the case. If you're a young person and you want to get invest in your future, then that's a great place to start. That if something is not broken, you don't need the next one. And so if I could just say anything to anybody, invest in stocks and not stuff.

Nicole Lapin
Money rehab is a production of Money news network. I'm your host, Nicole Lapin. Our executive producer is Morgan Lavoie. Do you need some money rehab? And let's be honest, we all do.

So email us your money questions@moneyrehaboneyoneynewsnetwork.com to have your question answered on the show or even have a one on one intervention with me. And follow us on instagramoneyoneynews and TikTokoneynewsnetwork for exclusive video content. And lastly, thank you. Seriously, thank you for listening and investing in yourself, which is the most important investment you can make.