314: [Fadi Habib]: Stock Market Investing Myths

Anthony Weaver: 00:00:00

This episode is sponsored by legacywealthbuilderacademy.com so.

Fadi Habib: 00:00:06

A few myths about the stock market. The first thing is that you can make money very quickly and I don't blame people.

It's just that the whole scene in the Facebook ads and stuff is it's all about day trading and crypto and the promises that you're going to make money very quickly. Stock market is very lucrative, but also it's not a casino. It's not, you're not buying lottery tickets.

Anthony Weaver: 00:00:25

So welcome everybody back to another exciting show, the about that Water podcast where we help the sandwich generation build strong financial habits so that they can talk about money, spend money and enjoy their money with confidence.

Today I have the founder and CEO of Legacy Wealth Builder Academy where he helps busy professionals build sustainable wealth and generate income through strategic options investing. I know a lot of y' all have been talking to me about investing. We need more investing episodes. Here we are. Thank you for coming on the show.

Fadi Habib, how you been?

Fadi Habib: 00:01:04

I am great. How are you doing, Anthony?

Anthony Weaver: 00:01:06

I'm doing good. Today's been a wonderful day. The weather's nice, can't complain. How about yourself?

Fadi Habib: 00:01:13

Good. I'm in near Toronto so it's getting colder. We're going to start our nine months winter soon.

Anthony Weaver: 00:01:21

Okay, well, I'm joking. It's six bundle up.

So now one of the things about for my audience and the person that's listening to they either have kids or actually caretakers of their parents and money is really tight. So why is options investing something for them?

Fadi Habib: 00:01:44

Okay, so start from the beginning first. The beginning is our educational system pushes everybody to have a 9 to 5.

And if you do have a 9 to 5, the chances that chances are really great that you will never be wealthy if you just stop at the 9 to 5. There's a very, very nice book that I read when I was 20, so 30 years ago. It's called Cash Flow Quadrant by Robert Kawasaki.

It's a must read for everybody and it tells you that there are four ways to make money. There is the, it's four quadrants. The first quadrant is employee the nine to five. And in this quadrant everything is stacked against you.

They take the taxes before you touch it. You cannot write off anything. You're basically exchanging your money, your time to make money for other people.

We're going to talk about the other people in a second. And then the second quadrant is self employed. So this person will have a little bit more freedom.

That's the doctor in their Clinic, that's the carpenter in their shop, that's, that's the pharmacist in his pharmacy. And they have a little bit of freedom. But both of these two quadrants exchange time for money.

Okay, the right hand side of the quadrant, there are two quadrants there. The first one is a business owner, somebody who has a lot of employees and basically he's using other people's time, the employees to make money.

Think of somebody who has 50 franchises of Starbucks or Tim Hortons or McDonald's. They don't have to be there. Right. So that's a business owner. And the last one which is the best is the investor.

An investor uses other people's time and money to create wealth. Huge advantages of the three quadrants, that is not in the employees, that they can write off stuff.

So your phone, if you're using it for business, then you can write it off. If you're using home office, you can write it off. So there's a lot of different things.

So to have the same after tax money as an employee, you'll need to earn much more than a business owner, for example, or self employment. Anyway, so I read that book. So I always had a good 9 to 5, good salary. But I'm always.

I don't have a lot of money for some reason I can't go to all the trips I want. I can't buy whatever I want. So I used to go to 9, 5. And then after that I used to invest. I learned how to invest.

If your parents are not billionaires or millionaires, then they. The task is upon you to teach yourself and you're not going to find that at school.

So I used to have nine to five and then after never really nine to five, it's much more than nine to five, come back at six or seven. But after that was my time. I spent a lot of time teaching myself, going to courses.

So I started with real estate investing and then I did that like starting 30 years ago and then 15 years ago I was completely convinced that anybody who invests in the stock market is an irresponsible investor. And the reason I had that view is that everybody around me was losing money in the stock market. Yeah, it seemed like a big casino and it is.

But I thought that there's something wrong with the market itself. I just did not understand the behaviors and that there is a method.

I always hear about Warren Buffett and Peter lynch and all these people who made a lot of money. It seems like they have a method, but I don't Know what is that? Just everybody around me is, is losing money.

So I went to this course 15 years ago just to prove the guy wrong. Basically just to prove that I'm right. And the right way of investing is real estate. And when I did that, I was open minded.

I actually, a light bulb came out that actually there is, there is a method. The fact that a lot of people and the majority is using the stock market as a casino.

It's not really casino if somebody is using like if I give you a tool like a knife.

Anthony Weaver: 00:05:28

Yeah.

Fadi Habib: 00:05:29

And you used it in a wrong way and cut yourself. That's not really the fault of the knife. It's just you using it in the wrong way. Bottom line is there is a method.

And I searched a lot and I found a really good method. I didn't really invent it. I just got the best out of all the courses, plus my own view on what it should be.

And I learned that there's a way to do stocks. There's something called a good stock versus a bad stock. And it's not because it just goes up and down.

And options is a really great way to leverage stocks if you know how to invest stocks first. So I have this method and I have a 12 week mentorship program that teaches people who are not looking for getting rich quick.

I'm sure we're going to talk about it. There's a lot of myths and a lot of misinformation about investing the stock market.

Anthony Weaver: 00:06:13

Yeah, go right on in because that was going to be my next one. Like what are the myths to get started?

Fadi Habib: 00:06:17

So a few myths about the stock market. The first thing is that you can make money very quickly. And I don't blame people.

It's just that the whole scene in the Facebook ads and stuff is it's all about day trading and crypto and the promises that you're going to make money very quickly. Stock market is very lucrative. But also it's not a casino. It's not, you're not buying lottery tickets.

So all like day trading for me is a very sure way of losing money very quickly. And usually the people who share their, you know, I just made $100,000 from day trading. Just ask them how many accounts have they blown up?

Anthony Weaver: 00:06:55

Okay.

Fadi Habib: 00:06:55

Blown up means completely made. Zero. So what I learned is it's not about the roi, it's the ROI versus risk. The ROI and risk are both two faces of the same coin. They go hand in hand.

You cannot disassociate the ROI from the risk. So if you tell me. Listen, there's this thing that you can buy and you can, you can win $5 million. Yeah, huge ROI.

But the huge ROI, it's called the lottery ticket, huge ROI, but also have massive risk. If you just look at the roi, you, you will sell your house and go buy this lottery ticket.

But the, the lottery ticket has massive risk because your chances of winning is almost zero. It doesn't change whether you buy a ticket or not. That's how small it is. So the game is not to maximize your roi.

The game is to maximize the roi, but look at the risk. And you should not be taking a lot of risk.

So that's the first myth, is that you can disassociate risk and roi, and that you can make money very quickly. You can do 24% or a little bit more than that with decent amount of controlled risk. And that's very lucrative.

You can double your money basically every three years, which is really great. But you shouldn't be taking a lot of risk. And it's not a get rich quick skip. So that's number one. Number two, you are not buying lottery tickets.

You're not gambling, you're not going to play blackjack. You're actually investing. And you're not buying lottery tickets, you're buying businesses. So what does this mean? You can't just buy.

When you buy a lottery ticket, you don't ask any questions because there's no inherent advantage of one lottery ticket versus the other. It's all random. It's all very small probability that you win. But when you buy businesses, you gotta be discriminatory, right?

You have to really look at if this business is good or not. Apple is not like BlackBerry. Meta is not like, I don't know, UnitedHealth.

So you need to be looking at all of this stuff and evaluating it as a business. You cannot buy something because your friend told you to buy it or because it had been going up a lot.

So a business, the main thing for the business to be evaluated on, is it making money or not? So any company that is not making money, like for example, BlackBerry for me, is not investable. You are gambling.

If you're buying something that is calling itself a business but not making money, it's not a good business. I can buy the products of BlackBerry, by the way. I used to work at BlackBerry.

Anthony Weaver: 00:09:24

Oh, okay. I was about to say, like, you know, I used to have one.

Fadi Habib: 00:09:27

I love them. I worked for six years there. But I can't invest in it because the model has not proven itself that it can make money. Okay.

The other thing also that is very important is assuming that day trading is the best way. It's not. There's four different ways of investing. There's a warm, buffed way, buying something and waiting for 30 years.

It's a great way, but we don't have 30 years to wait. Two is called Swing trading. Going in and out in a week or a month. Third is day trading. Fourth is scalping. Scalping is an extreme way of day trading.

For me, day trading and scalping are a no, no. It needs tremendous amount of time, like looking at charts all day, nine to five, and needs tremendous amount of skill.

And I rarely found people who actually can consistently make money.

Yes, they will take a screenshot when they make huge amount of money, but if you look at how much money they lost as, as well, it's not a consistent way. So my game is really in the long term investing principles and doing swing trading. Another myth is that the market has to go up all the time.

That's a big myth as well. The market breathes meaning, like for me, I inhale and then exhale. It doesn't matter how long the inhale is.

At some point of time, I cannot live without exhaling. Right?

So if a mother thinks that there's something wrong with exhaling when she sees her son or kid exhaling, she will think there's something wrong and she will get a doctor. In the stock market, it doesn't go in a straight line. Overall, it goes up by about 11% every year. That's for the last 100 years.

So we know that it's going to go up, but it doesn't go up in a straight line. The statistics show that it's about every four years, there's one year down. We know that. We know that twice a year it's going to go down by 5%.

At least once a year is going to go down by 10%. At least every 15 months is going to go down by 15%. Every two years going to go down by 20. You know, we know the statistics.

Sophisticated investors do not panic when it goes down. When it corrects it is normal. It is completely normal.

And the reason it is normal is that the stock market behaves extremely differently in the short term versus the long term. In the short term, I want you to think of the stock market. Is that a bunch of teenage drunken kids having a party? That's really. That it is.

It has nothing to do with how good the companies are. Most people are day trading or going in and out and looking at a quick buck. It's based. The stock market goes up and down for a certain stock.

It's basically the. The tug of war between the buyers and the sellers. If the buyers win, then the stock market, the price of the stock will go up.

If the sellers win, or sellers than buyers, the stock market goes down. So it's totally dependent on the sentiment of the people on that day.

So for example, Meta is a great business, pumping a lot of profit, pumping a lot of revenue. But if Covid happens, Meta will go down. Why? Has nothing to do with the ability of Meta generating profit. Right.

If there's a war in Ukraine, Apple will go down. The whole market will go down. But why? Apple is making a lot of profit. There's absolutely no risk on Apple from the war in Ukraine.

Why would Apple go down? It's because it depends on the sentiment of the people. If the people are afraid, they will just dump and sell.

So understand that in the short term, Peter lynch told us that there is absolutely no correlation, absolutely no correlation between the value of the stock, the worth of the stock and the price of the stock in the short term. By the way, short term is two years.

So you can have a really good stock like Meta and you will see it going down, down, down, or a good stock going up. There's absolutely no logic to it because it's based on the sentiment and the hormones of everybody in the market running headless.

So you should not be looking at the price of the stock to see that it's a good stock. It has nothing to do with it in the short term. Peter lynch also told us that in the long term there's 100% correlation. Listen to this.

You can make a lot of money out of this. There's 100% correlation between a good stock, the value of the stock and the price of the stock.

So if you have a good business, even if it's going down in the short term, meaning a year or two, if it is a good business, meaning it has a good moat.

Moat means it's not easy to go and take their customers and it's have a lot of revenue, it has a lot of profit, then it cannot help it but go up on the long term, which is five years. Understanding and discriminating between what is a good stock and a bad stock. By the way, traders don't care about if it's a good stock or not.

They, they will do anything.

They just look at the volatility of the stock, meaning they want a stock that Moves up and down very quickly so that when they go in they can sell it. After a day or so we'll make money. Just not a really consistent way of doing stuff because it's very random.

of time, I think starting at: 2022

Lots of revenue, lots of profit. The zone 22 went down to 80, lost from 400 to 80. It's lost 80% of its value. Its price, not value.

If you don't understand that this is a good stock, you will do like everybody else. You will be selling, selling, selling, thinking it's going to go down to 20.

But if you understand that this is a good stock and that it will go up eventually because it's really good stock. Everybody who knows anything about the stock market that I know was running around trying to get any money they have to buy such a good stock.

The normal behavior of a person in the stock market is that they will buy at the top, wait till it goes down, sell at the bottom. That's the normal.

If you leave yourself without any logic, just like there's no method, that's what it's going to end up doing and it's being manipulated. So yes, it's a casino, but not everybody there should be treating it as a casino.

There is a way to invest because if you go into it as lottery tickets, what you will get is a casino and results of a casino. You cannot win a casino.

But if you go as an investor and you discriminate and you find the skill of figuring out what is a good stock versus bad stock and what is a cheap stock versus by the way, meta at by the way meta right now is at 700. So meta at 500. Yeah, meta at 500 is a very cheap stock versus BlackBerry at 3 bucks.

3 bucks is very expensive for BlackBerry because again you need to know how to evaluate the business. So lots of myths around the stock market.

Anthony Weaver: 00:16:18

So that brings up the next question then is like with somebody who's extremely busy for day to day work and they want to dabble into this, how do they actually like what are the main three steps or the three things that they should know before they even get into the stock market to start doing it in real time.

Fadi Habib: 00:16:38

So it's basically starts with number one, you put yourself your mindset, need to change your mindset that you need to learn how to invest properly. Number two, you cannot risk any money while learning. You can just go in first day, put money and say, I'm going to try.

You're going to lose the money very quickly. So what I usually do is ask everybody in my program to open something called a paper trading account.

A paper trading account is an account whereby you open it for free and you don't need to fund it so you don't have to put any money in and they give you a million dollars monopoly money. Everything is real. It's like simulated trading. Everything is real. The stocks are real, the prices are real.

So you can try whatever method you're learning with absolutely no, with absolutely no risk of losing. So if you make money, you're not going to take the money. If you lose money, it's really not your money. So it's a very good way of learning.

And this is important that you don't risk your money while learning because you're going to make a lot of mistakes, right? If you're doing three great math and you didn't, you're in grade two, it's new to you, you got to make mistakes.

You can't just go thinking that I'm going to design a rocket not knowing the math right? So, so you got to make mistakes. You got to allow yourself the space to make mistakes. Number three, you got to learn, learn, learn.

And I gotta say this as well, that YouTube is a great way to learn, but it's not enough. You cannot learn how to ride horses by watching YouTube videos. You cannot learn how to swim by learning YouTube.

At some point of time, you need to jump into the pool with a mentor. You have to. So find a mentor that is good with a package that will work for you. Because what the mentor will give you is the feedback.

Somebody that maybe a friend of you, it doesn't have to be a mentor friend that knows what they're doing. You need the feedback.

Because I myself cannot learn something through YouTube and without the feedback loop to, to figure things out and identify my mistakes and learn from my mistakes and correct my mistakes, it becomes very difficult. So four things. Mindset, that is something that you need to learn. Number two, paper trading account so that you don't risk your money.

And by the way, you don't go into live trading, life investing or life trading, except when you prove to yourself through few months that you can make money in paper trading. Because if you're not paying money in paper trading, why do you think you can make money in live trading? You know, like just Not.

Anthony Weaver: 00:19:07

Yeah, because you're going to play like you practice.

Fadi Habib: 00:19:09

Exactly, exactly. Yeah. Learn a lot and find somebody can give you feedback.

Anthony Weaver: 00:19:15

So how did you get into this? Was it something that your parents said or your kids was like, hey, you know what?

Fadi Habib: 00:19:21

No. My parents are very risk averse. I am too. But my parents are very traditional. So for them, anything other than the 9 to 5, I'm wasting my time.

So the way I got into this, as I said in the beginning, it because I wanted to be wealthy and I know that 9 to 5 will not make me wealthy. So I searched.

So I worked a lot on my real estate, did a lot of mistakes in the beginning and then I figured like, you know, and when you start usually, usually you make mistakes and you get the wrong people to teach you.

Anthony Weaver: 00:19:52

So which is true.

Fadi Habib: 00:19:54

But I was lucky.

I did not like, you know, even with the mistakes, I still made very little money till I found a group that are really, really good here in real estate. And I learned a new system of learning of investing in real estate. And I did a lot of.

I had a lot of success in real estate and then in stocks in the same way. I started with paper trading and it's great, it's really good. Also, one of the very important things in this game is to control your fear and greed.

And this is kind of what everybody does not do in the stock market. They're all fearful. That's why there's volatility in the stock.

If the stock value is 50 bucks, sometimes it's going to go at 5 bucks, sometimes it's going to Go at 100 bucks. Why? Because if there's a lot of greed, people will have no issue buying it at 100. And if there's a lot of fear, people will just sell it at 5.

So controlling your fear and greed and understanding what is the real value of the stock is very important. If you're too fearful, you will do nothing. And if you're too greedy, you will everything.

Just basically get yourself into stuff that is very risky and you're going to lose the money very quickly. So it's a lot of balance for me. My program is called the growth program and it has like five, six elements. The first one is having the right goal.

The G. If you want to double your money every two months, good luck. You lose your money very quickly. Because think of it this way. I'm near Toronto. If I need to drive to Florida, takes 24 hours driving.

If my goal is to reach Florida in three hours, what will that do to Me, I will have to drive at 900 miles per hour to reach there in three hours. If this is my goal, it's just a matter of time till I get involved in an accident. It's of course right.

So having the right goal and level setting yourself about 24% ROI is really good number. It's double what the market can give you. So setting the right goal.

And the reason I'm saying that a lot of people I talk to and they tell me fatty 24% is very low for me. I need to double my money every three months or so and tell them it's not consistent, they can't do that consistently.

And you would be putting yourself in a lot of risk. But anyway, so that's, that's the g. And then in my opinion, the strategy or the way to make money is just 10% of the equation.

What's much more important is how to not lose your capital.

So if you spend one hour figuring out a strategy, you need to spend two hours to three hours figuring out how other people lost money in the situation. Because why assume that you're smarter, right? So learning how to risk mitigate and what are the risks.

You can go into the stock market with the behavior of a two year old crossing the street, they're oblivious of the risk. You can't just move on thinking there's no risk because again, it's a disaster waiting to happen.

So 10% strategy, 30% risk mitigation and then 60% psychology. Learning how to deal with fear and greed because. And that's what makes the difference between a person and another.

You can learn the same strategy, but one person will do very well, like Warren Buffett. Another person will do really bad because they can't control their grade, for example. All of that. And the right goal is also not enough.

If you're taking all of that but did not implement, did not train, not watch YouTube videos. You need to train.

Anthony Weaver: 00:23:18

Yes, build up muscle memory.

Fadi Habib: 00:23:20

A lot of people, like, you know, a lot of people who take video courses, the statistics say that about 3% of people who buy a video course finish it to the end. Imagine only 3%. And you can imagine out of the 3%, how many of them are brave enough to implement.

So you need to implement, you need to do train in a paper trading account. And when you have all these concepts, few things like these are basically four pillars or so. Number one, there's theory and knowledge.

So you learn that in the strategy. Number two, there's the coaching element so that you can get feedback Very important.

You can move on reading the same thing, thinking you understood it, but you don't or you don't know how to implement it. Coaching is very important. Third is structure.

In my, for example, in my coaching program, when you meet with somebody, whether a friend or a mentor, once every week, we're all very busy and we're. There's a lot of distractions from the phone to Facebook to everything.

So you need this structure so that once every week you renew the promise and you get focused back on what you need to do. And the fourth thing is paper trading so that you don't lose money while you're training. So these are the four pillars.

It's basically in the growth system that I do believe everybody should try to assemble somehow so that they can have success.

Anthony Weaver: 00:24:43

That is great because sometimes we don't look at things or try to, well, not look at things, but we actually try to align things so that it actually aligns with our goals.

So having those four pillars and if any of those pillars actually align with our goals in the future, that kind of helps out to make sure we on path, if I'm understanding that correctly.

Fadi Habib: 00:25:03

It's a very methodical way. Like, you know, if. If you can't sleep at night because you're afraid that the stock will go up and down, then you're doing it wrong.

You're speculating, you're gambling, not reinvesting. Investing is actually very calm, very slow. You can have really good roi, but it's really slow. It's very. It's boring. Yeah.

You should not be taking adrenaline rush from like investing in the stock market. It just. Just means that you're doing it wrong. Yeah.

Anthony Weaver: 00:25:32

I used to get excited about certain things, but only because I invested in everybody else, said it was a bad investment and it actually turns out to be okay.

Fadi Habib: 00:25:41

Okay.

Anthony Weaver: 00:25:41

Like, I mean, I always throw this stack out there. Everybody that listens know I do it. It's the stock Ionq. Cause I like Quantum.

But I've been talking about it since they were like $2 and now it's hovering around 40. But at, at the time of this recording, of course. But you know, people laugh like, well, I don't understand it.

I was like, well, you don't need to because that's where it's going. But it's just fun from that point. But since we're in the future side of the house, what areas of focus do you think you can improve on in your life?

Fadi Habib: 00:26:13

My corporate life is about engineering, project management. So right now that I'M running this coaching business. I found out that I'm really terrible at marketing, so. Okay. Really terrible engineer.

I don't want to talk on Facebook. I don't wanna do sales or anything like that, but it's a area of growth for me. So, again, like a champ, I am. I taking a lot of courses.

I'm being a podcast to try to tell people about the good thing that I'm doing. I'm starting to do Facebook videos. I'm posting every day on, like, it's very hard for me. I just. I'm not that type of person at all. But it's.

Here's the thing, though. The bigger the obstacle, the bigger the challenge, the more growth you will do. So I'm determined to be good at this somehow.

Anthony Weaver: 00:27:08

There you go.

Fadi Habib: 00:27:09

I'm still figuring out my way. Because when you're not good at something, you're in a dark room, you don't know where's the door. So you have to try a lot of things.

You have to allow yourself to fail because there's a lot of failure in the dark room. And of course, I'm learning a lot. And not everybody's telling me the best thing, but I'm finding my way. I'm making progress. So that's. That's.

Anthony Weaver: 00:27:29

That.

Fadi Habib: 00:27:30

That's the main growth thing for me.

Anthony Weaver: 00:27:33

So. Because one of the things is you brought up fear. And when it comes to fear in your. In your life and. And. Or even in your career, it's just like.

Seems like you like to tackle your fears and really face them head on, like one and just kind of like take chunks at it. Like, you know what? I'm gonna figure this out one way or another. Is that something that you like and still like?

Fadi Habib: 00:27:58

I don't like tackling my fear. I just don't have a choice.

Anthony Weaver: 00:28:01

You don't have a choice?

Fadi Habib: 00:28:02

I don't have. It's not that I like tackling. My fear is that it's how hungry you are. If you want to be successful at something, it doesn't matter how fearful.

Are you from the stock market or real estate? You gotta start like, you know, like, it's not that I want to, like, because it's very uncomfortable.

Like, when you're growing, it's very uncomfortable. You have to go out of your comfort zone, meaning you have to be uncomfortable. Right? So it's not that I like it.

It's just that I guess I like anybody else, I postpone a postpone. I post one. And then one day I said, listen, if I keep on doing this, I will never get that skill. I will never do this thing. Fine.

I'm gonna open the camera and be on a Facebook Live, right?

So even changing my LinkedIn to say that I'm gonna go from being whatever corporate guy to a coach was a huge mental block for me because I'm not used to something like this, to open up to something like this. But again, once you do it six months after that, saying how stupid I was, why was this a big deal?

It's not a big, like, you know, but if you keep on pushing yourself, you're looking back and say, wow, I've moved a lot from that point. And then you wonder, why was it such a mental block for you at that time?

I remember the first time I signed a contract in real estate, my hand was shaking. That was how uncomfortable I am, because I have no idea, though. I took a lot of courses and figured out I had mentors and stuff.

Again, you don't know what you don't know. So right now, I have absolutely no fear. I can sign again if I. I can sign like five contracts a day if I need to, because I have experience, right?

And I went through that. So the first time you do something, it's terrifying. But what choice do you have, right? What choice do you have? Right?

It's the price you have to pay so that you don't pay the cost of not acting. And success. I know that success is not about learning at all. There's only one function. Remember this math thing when you have functions.

So success is a function of only one thing, action. It doesn't have to be the right action, by the way. That's why I noticed that I really don't need a high IQ to succeed in anything.

The people who do a lot of action. So I, like, have few people. Even in real estate.

I see people who are like me, engineers, who analyze things to death and do this paralysis because I want to do the best deal possible with the least amount of money, highest roi, all this stuff. And then I spent two years analyzing something.

And then I have this guy beside me who is like third of my IQ in terms of analysis potential or analysis capability. But because they go and do stuff, they have action.

Their learning curve is very fast compared to me because I didn't do anything in two years because I'm just stuck analyzing stuff. The guy did already five deals.

Anthony Weaver: 00:30:56

Wow.

Fadi Habib: 00:30:56

And even if three of them or four of them are bad, he got experience. He doesn't repeat his mistakes or her mistakes. And so Success is about function of action. Doesn't have to be the perfect action.

Doesn't have to be the right action all the time, but you have to move on as long as the action doesn't kill you. Right? Like, like don't buy the end of the action. Don't take all your money and, and buy lottery tickets and call that an action.

That's not an action, that's suicide. So it's about action.

So once I figure out that you know what the pain of not acting, the pain of not having the result is higher than the pain of acting, whatever the comfort zone that I'm going out of, then I would say I won't have a choice. I have to do it. But I don't like it. So just had to comment and that's.

Anthony Weaver: 00:31:41

A good, that's a good takeaway for the person that's listening right now to really dive into is like, what is something that you've been analyzing for so long for? Why don't you just go down and take the action and just do it?

Fadi Habib: 00:31:57

Yeah, but it's hard. It's hard because you're afraid. And people are afraid of different things. People are afraid of failing.

Anthony Weaver: 00:32:05

Public humiliation.

Fadi Habib: 00:32:06

Yeah, public humiliation. Do you want to save face? If I don't fail, at least I'm now better. I'm now not a success, but now at least I'm not a failure.

Believe it or not, people also are afraid of succeeding.

Anthony Weaver: 00:32:20

Yeah, I can raise my hand to that one.

Fadi Habib: 00:32:22

People are afraid of succeeding because they don't know what to do once the next step they had some success in. So I know it's, it's very, it's very hidden, but people are so afraid of failing. And here's the thing.

If you are not willing to fail enough, you will not succeed. Look at anybody who's good at anything. A researcher that won Nobel Prize for some, or Michael Jordan.

I think Michael Jordan, every time he pushes the ball, scores. No, like, you know, how many times he had to train and how many times out of how many balls he throws, how many goes into the baskets? Right? Yep.

Three. I don't know, but it took a long way to go from one to three. So you gotta. Yeah, think of it this way. You gotta fail more if you don't fail.

If you're adamant that you're not gonna fail, I'll tell you, you'll never get success in anything. Basically for online.

Anthony Weaver: 00:33:12

Yeah.

One of my favorite famous, well, favorite quotes that I like to use is that a professional or a master only Become a master because they failed more times than you even tried. And I was like, wow. Because it's like you have to do something like. Yeah. I mean, I can go on a tangent about failures all day.

We both have consistent stories. This is not a failure episode Failure podcast. We want you to succeed and learn through the stock market and be successful.

But going back to, like I said, go with the paper trading, learn from it and master it and fail a lot before you start using your real money.

Fadi Habib: 00:33:53

Yeah. You can do well in an exam, math exam at school. You have to train and fail in the training. Right.

You have to do a lot of math problems, go wrong, learn from it, and then move on.

Anthony Weaver: 00:34:05

Yeah. I have a. This my calculus book from high school. That's why I was looking at it. And most calculus people would know the famous red book.

I love this thing.

Fadi Habib: 00:34:16

So you can't do well at a calculus exam. You have to do a lot of wrong. Right. And that's called training. That's called doing exercises. Right.

And if somebody does not want to do the exercises and fail in them, what are the chances they're going to do well in Exam 0?

Anthony Weaver: 00:34:31

Right. Exactly. Well, you ready for the final four? Because like I said, we can talk all day about this one. Yeah. You ready for the final four questions?

Fadi Habib: 00:34:39

Yes.

Anthony Weaver: 00:34:47

All right, so these final four questions are the last four questions of the show just so we can learn a little bit more about you. But these are quite rapid fire, so.

Fadi Habib: 00:34:56

Okay.

Anthony Weaver: 00:34:57

All right. So number one, what does wealth mean to you?

Fadi Habib: 00:35:01

Wealth means freedom. And there are 12 types of freedom.

Anthony Weaver: 00:35:04

Okay.

Fadi Habib: 00:35:05

For me, the main ones are time freedom, location freedom, and control. Freedom of control. So I want time freedom. I don't want to have a 9 to 5. So that's first. Freedom, location, freedom.

I want to be anywhere in the world and I've designed my life to be like that. I can go anywhere in the world and keep on my coaching that I like to do. Third is freedom of control.

I don't want someone like a manager to tell me what to do. So. So wealth for me is the free. It's not really about the money. It's about the. The freedom that comes with it.

Thing is, you can't have location, time and control without the financial freedom and the wealth.

Anthony Weaver: 00:35:43

Can you go through all 12 right quick, just so people would know?

Fadi Habib: 00:35:47

I don't remember them all.

Anthony Weaver: 00:35:49

I got them for you if you want.

Fadi Habib: 00:35:50

You know what? I can just ask ChatGPT what are.

Anthony Weaver: 00:35:54

I have on 12 if you want them.

Fadi Habib: 00:35:56

12 types of freedom so we talked about four already, right? The financial freedom, the time freedom. There is career, professional freedom. If you are not wealthy, you cannot choose where to do.

So for me I'm choosing coaching though really. It's not completely lucrative up to this point but I love to do.

And when you love something you can spend a lot of time doing it and you're in this state of flow that you can spend five hours not knowing that you know what, that was a five hour coaching session. Why is it that I'm giving all that time? Not really. I'm enjoying it. Health freedom, basically physical and mental well being.

A lot of times I was in jobs that was really affecting my health but I didn't have a choice. Emotional freedom, liberation from fear or anger.

So when you, when you have a good nest egg and you know what you're doing and you're not fearful of things around you. Spiritual freedom, basically living your life in alignment with your faith. Relationship freedom.

I don't have to be friends with anybody because I don't need any like you know, I, I'm here to help people and, and I'll be in the relationships that I want to be attracting good people around me and I don't have to deal with bad people because I have this freedom, education, knowledge freedom. A lot of people choose the way they learn about something just because they hate it.

But just because this is where wealth is, they go to that of course political and legal freedom and then creative freedom and purpose freedom. There is so many types of freedom but for me the main ones for me is time, location control, love it.

Control over my life, other people just sitting there. I don't want control people, I just want to control my life.

Anthony Weaver: 00:37:41

That's a whole nother show. Number two, what was your worst money mistake made so many, many mistakes.

Fadi Habib: 00:37:47

So in real estate for example I in the beginning because I didn't have a lot of money, I learned something called no money down. So I used to buy houses and in closing they give me money. So it's very weird.

The problem is that these types of houses are very run down and we call it D houses in D areas. So there's A, B, C, D, A is the very affluent, big houses in very nice locations. I used to buy C and D houses in cn.

So the type of tent is really cnd. The type of drunk people drunk all day.

So but because this is what I wanted to do because I didn't have a lot of money, that's what I started with and what is really amazing is that that was a big mistake. So I had few properties like that and struggle collecting the rent. But I still did not lose a lot of money.

I actually made at least I was breaking even. So it wasn't that bad. So that was a big money mistake.

Another big money mistake is that I bought a motel at some point and again it was run down and I did not have the money. I thought I can run it without fixing it. That's another money mistake. Third mistake in stocks.

In the beginning I didn't know what I didn't know and I used to.

In stocks you can like same as in real estate, you can leverage, you can like in real estate, you can go to a bank, get 80% of the money, you pay down payment 20% and buy a house, which I will always do in real estate.

In stocks you should not be using margin at all, margin calls because it's very risky and at some point I did not know that and of course I paid the price because you make three, four times the profit. So you make a lot of profit very quickly.

And then when the market goes down, stock market, one of the issues with the stock market compared to real estate is that it's very volatile, goes up and down very quickly. So we know it's going to go down. I didn't know that at that time. So when it goes down and you're leveraged, they do something called a margin call.

Basically, they, you give back all the profit plus your capital, big portion of your capital. So again, I was so lucky that I wasn't like, you know, it didn't really wipe me out. But I. There's some positions that I took. I made a lot of money.

But right now, if I look back at them, I was stupid. I was putting myself in a lot of risk. I'm so happy that I, I did not lose a lot. Anyway, that's why you should start with paper trading. Right.

Anthony Weaver: 00:39:58

There you go. Like getting back to that training option number three, is there a book that inspired your journey or changed your perspective?

Fadi Habib: 00:40:06

Cash flow quadrant and for sure Napoleon Hill Sink and grow rich.

Anthony Weaver: 00:40:14

Yes, they like so golden. Number four, what is your favorite dish to make?

Fadi Habib: 00:40:20

Dish to make? Yes. Okay. I'm originally from Egypt and I really, really love this beans dish. And in Egypt we like the food very delicious and very unhealthy as well.

So it's a beans dish, but we put a lot of oil and spices and tahini and a lot of really nice stuff. Tastes really good. Very heavy. I make it heavy, but it shouldn't be heavy. It's really, it's really very healthy dish.

It's a beans dish full of protein. But it's just the way the stuff that I put at in it, it makes it very tasty and a bit of the unhealthy side as well.

Anthony Weaver: 00:40:52

What's the unhealthy part? What's. What's healthy?

Fadi Habib: 00:40:55

Lots of oil, sometimes with oil, margarine and butter. We're very creative in how to make it unhealthy. So, yeah, really good at that.

Anthony Weaver: 00:41:06

Awesome. All right, so this is the very last question of the show, which is where could people find out more about you?

Fadi Habib: 00:41:14

Ah, okay, so I'm, I'm on all social media, so my company is called Legacy Wealth Builder Academy. So My website is legacywealthbuilderacademy.com I'm on Facebook. Fari Habib. F A D I H A B I B. I'm also on LinkedIn Faerie Habib Instagram as well.

So, like, look me up. YouTube is very important as well. I have a lot of videos, a lot of podcasts. So yeah, and I gave you the links.

If you can put them, that would be great. But search for me and then I do a lot of free training as well, like attend some of my.

I'm also on meetup, so find me somewhere and attend some of my free events.

Anthony Weaver: 00:41:58

Awesome. Fadi, thank you so much for coming through on the show. For the, for you who are listening, I want you to remember that you do have what it takes.

Just remember that you just need to practice and it's okay to use paper trading and yes, you're going to look like you won some money that you did not use your actual money. It's okay. But this is all part of the training because once you get out of training you, this is how you're going to be operating in real world.

So please go down and take the punches while you're training. Learn everything you can and be comfortable in the strategies that you want to take from this. Because remember, personal finances are personal.

So remember, be safe, be out.

Fadi Habib: 00:42:41

Peace. Thank you.