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0:00 spk_0
These things are small nuances along the journey, Ross, when you couple it with risk management, when you couple it with proper stop losses, when you do all the things and it comes together, you now have a recipe for success that can be replicated and duplicated consistently.
0:19 spk_1
What’s up world? Welcome to Financial Freestyle here on Yahoo Finance. And listen, man, our first interview was so good we had to do it twice, man. We’re bringing my guy, the myth, the legend Chris Sae, financial educator, entrepreneur, podcaster, investor, philanthropist, and guess what? He’s back. Chris, how you doing, baby?
0:40 spk_0
Man, thanks for having me back. I’m doing well.
0:42 spk_1
Well, listen, man, it’s the beginning of the year, and one thing I know for sure, people are going to start trying to go to the gym, they’re gonna do that for about 4 or 5 weeks, and then they’re gonna go back to what they were doing last year, eating good and they’re gonna instantly fall off and procrastinate. But you already know, man, it’s new year, new me, so what advice would you give, right, topTwo or three things you would give from a person that’s actually saying, you know what, I want to get my money right, but more importantly, I want to be profitable this year when it comes to investing andtrading.
1:14 spk_0
Absolutely, man. The thing I would say is come out the gate with a plan. Have a strategic plan for the new year. If you have the 2025 year to reflect on, look at what worked well.Look at what could be improved upon, and then allow that to serve as a guide for how you want to kind of set yourself up for the new year. If you have a plan, it gives you a roadmap to follow. So for example, if you were trying to invest for the first time, and say, even if you started small with just doing $50 on autopay.Every 2 weeks. Maybe see if there’s a way to increase that $25 to $75 every 2 weeks or $100. Look for small things, have a plan. If you are investing bigger money than that and you can buy an ETF and instead of buying a fractional share, maybe you buy a whole share this time.Little incremental things along the way add up actually, and I think if we can embrace those small changes while following a plan, we can see our desired results toward the end of the year.
2:22 spk_1
You got to set a plan, you gotta hit the plan, but I love how you say it, go from 25 to 75, even if you fall just down to 50, you’re still making progress, so I love that, man. You gotta raise the bar. You got, you gotta raise the bar each year. Um, let’s talk about trading evolution, right? What would you say, you know, has helped you get to where you are now? So let’s talk about kind of what that, you know, that light bulb switch was that took you fromYou know, beginner trader, Chris, to kind of being a person that’s now consistently profitable.
2:55 spk_0
Absolutely. So it took 2.5 years for me to become a profitable trader, so I want everybody to know that there’s a learning curve that we all must go through. We all call it the tuition that we have to pay. There are certain lessons that we learn in our losses.And so I had that 2 year process that I had to go through first and foremost. Secondly, I am obsessed and I’m meticulous about my craft. So, the obsession piece is figuring out what worked and what didn’t and why. The being meticulous piece is, Ross, I jot down everything. If you were sitting in my office right now.I journal everything, I write down things. I make sure that I can tell you to a T how I did what I did, and this allows me to replicate and duplicate my success time and time again, which helps me also become profitable in terms of my trading. Now, I’ve hit a whole new stratosphere where I was starting off Ross after I got over the two year hiatus of learning.I made $100 a day. Then it went to perfecting my craft to $1000 a day.Then I transitioned to $10,000 a day. All I was doing, Ross, was following the same pathway, the same setups and pattern recognition within the charts that I was seeing to make $100 and that was with one contract. I might have bought 10 contracts to get it to $1000. Nothing was different, but I now was able to scale up the number, follow a process, and then increase the profits, which helped me become a consistently profitable trader.
4:34 spk_1
You know what I love about that? You kind of said, you know, I started off $100 a day to $1000 a day, $10,000 a day, $20,000 and keep going for you, right? Let’s talk about the psychology of not over trading, because say I get in my first trade, and I’m all I’m trying to do is make $100 but I lose $75.And now I’m just trying to get back positive. Now I lose $150. And you know what, let me just take one more trade and then I went down $400 and my risk, man like, let’s talk about kind of that psychology of notover trading.
5:11 spk_0
Yeah, that was the reason why I had a 2.5 year learning curve, if you will, losses to make it more plain, because over trading and revenge trading, because the emotional human nature takes over us too, Ross. And so when we lose that $75 while trying to make $100.Now we’re, I got to get that back. I got to get that back. And so that led to a larger loss of $75 to maybe $100 when we were just trying to make $100. So what helped me was for myself to overcome the over-trading aspect. Listen to this, I increased my risk management, meaningI had a hard stop. Meaning if I go down, let’s just say $500 no matter what, I’m cutting it at that limit just to ensure I don’t go down $1000 or $1500. So I would learn to, sometimes the win is learning how to have smaller losses than you normally would. So say you lost $3000 when you had a losing trade, but now you decrease that to $500.Those are wins within the game itself that we overlook oftentimes. So proper risk management.A tight stop loss when I’m respecting my risk management. And listen to this, Ross, I have this system that I call 15 trades. It’s a 15 trade challenge that I do for myself. It’s an internal thing. This kept me from over trading.As opposed to trading all day, I would only take 15 high quality trade setups. So that put me in a place where I might take a trade on Monday, and my next trade didn’t come until I seen that next high quality setup, Ross, that might appear on Thursday. Now I didn’t trade every day. I was in the market every day watching.And kind of seeing the patterns and the behavior of the market, but my only trade was Monday, my next trade might have been Thursday, and the next trade might have been next Tuesday.Three total trades in 2.5 weeks, it calmed all the over trading down, and that really took me to that upper echelon level when you talked about 200 a day or 30K. That’s how I got to that, because now I’m only taking the best setups that I see clearly.
7:31 spk_1
So do you define yourself as a day trader or a swing trader?
7:35 spk_0
The technical term, if we were talking to other traders from the industry on Wall Street, they would say day trader. I call myself a sniper. The thing that I think separates me, Ross, I do all of this in under 2 hours a day. I don’t trade more than 2 hours a day. That was another risk management piece that kept me from over trading. So if I’m only trading 9:30 Eastern time to 11:30 Eastern time, that 2 hours is where I’ve got to make the bulk of my money.This keeps me from trying to take a trade at 120, trying to take a trade at 2, trying to take a trade before the end of the bell, and this has allowed me also to be more profitable, to be more consistent when the market is more liquid, and these things areThere are nuances along the journey, Ross, when you couple it with risk management, when you couple it with proper stop losses, when you do all the things and it comes together, you now have a recipe for success that can be replicated and duplicated consistently.
8:37 spk_1
All right people, this is the moment of the show where you go ahead, get out your notebook, just like Chris, I’ll also be writing my stuff down, you know what I’m saying? ButHere’s the time where, you know, it’s time for you to go ahead and change your life for 2026. So you keep using the word high quality trade setup. I’m gonna need you to define that, baby. Right now people, for 2026, we need to know how Chris Sa defines what a high probability, a high quality trade setup is.
9:11 spk_0
Absolutely. And when you guys do this, this keeps you from gambling. Too oftentimes we get a bad rap in the trading sector because those that don’t know what they’re doing turns into gambling because they’re not waiting and looking for a high quality and high probability trade setup. Simply put, what that means is this. Number one,You have to use a chart in order to even see what’s the quality and what’s the high probability. So this is a technical analysis piece. On the chart, you must use the 1 day time frame, the 15 minute time frame, as well as the 30 minute time frame.These give you a macro level look down to a micro level look of the stock you’re trying to trade and make money with. When you then have your time frames identified, your next step is to become recognizing the chart patterns that the stock is actually making. Sometimes, listen to this, the high probability trade setups are, listen to this, everybody, these come with an 80% win rate. The double bottom.The double bottom might look like the letter W for those of you that don’t know the charts yet. So you might see a W forming the chart, and if you buy the second leg of the W, that’s the high probability trade because it’s an indicator that 8 out of 10 times the stockis going to go up after it make, if you get the second leg of the W, boom, this one is going to be the one to take off. And so if you can understand that, that’s one. The next high probability trade set up is called the bull flag. The bull flagThink about the American flag. We’re all here, we all have flags to represent our country, for example. If you think about the flag, you have a pole and then you have the flag. Well, the flag tells you the measured move of the next move higher. So the length of the pole.Once the flag is done forming, what we call consolidation, the next move up will be the same exact height, distance that the flagpole was. So sometimes people say, Coach, I don’t know how long to hold my plate for. Well, look at the dollar amount of the flagpole. If the flagpole was $2 if the flagpole created a price range of $100 to $102.And then it went sideways from 102 to $10,250 then you should know the breakout will be a $2 range from 103 to $105 if that can be something you guys wrap your head around. These are small surface level, beginner level examples of high quality and high probability trade. And guess what? One last thing on that.Because it gets much more complex than that. One thing on that, everything that I just pointed out.In this example, is true in reverse. So you have a bull flag, you have the bear flag. The market does the same exact patterns to the downside that it did to the upside, 12, if you have a double bottom.That’s the letter W that tells us the stock is going up. When the stock is ready to go down, it makes a double top, which might look like the letter M. It might be, you might see an M shape and the two tops tells us, Oop, the stock is about to go down after that second head is formed. When you see these things, these are what we call high probability trades because you have an 8 out of 10.Percentage rate ratio that is going to go in that proper direction.
12:55 spk_1
Ilove it, I love it, people. I hope y’all taking notes, but look, we got to take a quick break, but when we come back, we’re gonna continue to talk about how to level up your bag in 2026 with Chris saying.All right guys, welcome back to Financial Freestyle. Look, we’re here with Chris saying, and I told you I’ll keep the notebooks out, so it’s only right. Chris, if you could only live off using 2 indicators for the rest of your life when it comes to trading, 2, only 2, what are those?
13:32 spk_0
The VWOP and the 200 day moving average. The VWOAP is the volume weighting moving average, volume weighted average price is what the VWOP stands for, for my listeners. VWOP.
13:44 spk_1
How, how do you use, uh, both of those indicators then? Let’s let’s, let’s go there.
13:49 spk_0
Check this out. So the VWOP is anchored to whatever the high was of the previous day. Really quick note, for those of you want to make big money fast, not get rich quick fast, but big money from a responsible perspective. Whatever, whenever a candle crosses the VWOP.Whatever that direction is, is where it’s going for the next hour. So, for example, if the stock candle that you’re trading, the candle on the 15 minute time frame was underneath the VWOP, the first time it breaks and closes above the VWOP is a trend change, a reversal in the trend.So it was down, it broke above the VWOP. Now the VWOP will turn into support. This is what people don’t realize. So then the next moves from there, the next 15 minute candle will then use the VWOP as a trampoline almost to bounce and rock it. Same is true in reverse. If your stock gapped up and then it comes back down and breaks VWOP.It’s going to, like my brother Ross called a falling knife, it’s going to have a snowfall, a waterfall effect to the downside because it broke through the VWOP to the downside. Keep that in mind for how to properly use it.
15:05 spk_1
And nota billion dollar question, are you investing as it breaks through or are you only investing on the break and retest?
15:12 spk_0
I only invest on a break and retest. That’s called confirmation. And as an athlete, guys, we call that the hitch and go, or my DB we call that bump and run. So if you’re with me, our lingo is totally different, but yep, Ross calls it the break and retest. That’s the technical term. If you’re part of my community, it’s called hitch and go or bump and run.
15:35 spk_1
All right, so I like that. That’s real game. Now I gotta keep it going, lightning it round, I gotta put you on the spot. Just say one or the other. Long-term investor, lightning round, Apple or Google? Google. Nice. Nvidia or Microsoft?
15:49 spk_0
Nvidia,
15:50 spk_1
Tesla or Facebook?
15:52 spk_0
Meta.Facebook
15:55 spk_1
Palantir or Amazon?
15:57 spk_0
Palantir.
15:59 spk_1
Oh, Bitcoin or Ethereum?
16:02 spk_0
Bitcoin.
16:03 spk_1
I love it. I love it. So look, we’re gonna keep this thing going for the theme of 2026 of getting your bag right. Whether a person is trying to take their account from 500 to $1000 1000 to 10,000, or 10,000 to 100,000. What would you say is the psychological changes they need in order to scale it properly?
16:24 spk_0
Time in the seat. You have to have, in our world, what Ross and I do, we call it 10,000 hours. You have that level of mastery, which is why we can speak about the market, the macroeconomics of the stock market this way. Time in the seat is how you scale from 1000 to 10,000.1000 to 50,000, so on and so forth. All it is is it becomes a game of learning from past experiences that helps inform your current future decisions. And if you can do that, meaning, I told you guys transparently, it took me 2.5 years of lessons and losses to get to a level of mastery. So your time in a seat may be shorter, your time in a seat may be longer, but you need the time so that you know your own.Uh, imperfections that you’ve got to overcome, your own character flaws. Are you impatient? Are you loss averse? Are you, do you panic when the drawdown happens? Do you sit through it? Do you sell your winners quick? Do you hold your winners long? All of these things are things you work out in the in the process of becoming who you’re going to be as an investor and a trader.
17:39 spk_1
So you know what I love about you is you also show, you know, your wins. And I remember at the end of 2025, there was a lot of commotion about, you know, effectively like Nvidia, it’s like a Ponzi scheme, you know, they’re doing this and that, and the market was red for, you know, a lot of days where we saw many of the AI names start to trade down. However, you posted, you made money.Let’s talk about the psychology of Red Day and actually how you approach that.
18:12 spk_0
Absolutely. Long ago, I told the world that I was an athlete that came into the stock market and athletes at sports, being football and basketball specifically, you have offense and defense. I view the stock market as costs or markets moving up as offense.And I don’t look at the red day as a negative day. I look at the red day as defense. I played DB. I was a Division 1 cornerback at Michigan State. So, for me,Uh, Hood is a pick 6.Resistance, I look at as an all-out blitz. I look at it as like Ray Lewis, you’re trying to run to get through Ray Lewis and if you can’t get through an NFL linebacker, then you’re gonna get sacked or you’re gonna go backwards. So when the market goes down,I’m not down on the market. Actually, the market moves faster to the downside. I have what Wall Street might call hedges. I have puts on the same players I know, like and love. So if I’m trading Tesla to the upside, when I hit resistance, so when we hit 445 today, that’s going to be resistance in an example of a stock. When we hit that target, ifIf we don’t break through, then I know, OK, boom, exhaustion, it’s tired, it’s going to retrace wherever it came from. So it might come back down $5 and in my head, that’s an opportunity to the downside to make some money until we’re ready to go back to the upside again. So that is how I go about processing, making money in both directions.Uh, whether it’s a green day or red day, to me there’s always opportunity to make money in the stock market.
19:59 spk_1
I start this episode off by taking my hat off to you and I just really want to talk about what you and your wife are doing on the philanthropic side. Cause it’s one thing where we saw, you know, at the end of last year, Michael Dale and his wife donate, you know, like $6 billion or so. But what you and your wife are doing, I have to commend you. So, let’s talk about some ofYour efforts. I know you just did something with Jalen Rose. Let’s kind of talk about, you know, some of the things you and your wife have been doing this past year.
20:27 spk_0
Jalen Rose, for example, he has his school, and oftentimes we look at LeBron James primary school, but we forget he was the first to come out with the school for an athlete.And he told me there was a need that they needed to upgrade their technology. And so we see a need and like to meet a need, and I’ve told him to say less. And so we made it a point to pull up to actually touch him, touch the students, get a tour of the school, see all the good things they’re doing, and uh sew a monetary gift into his school to improve the technology. And it’s just things like that.Uh, that we’d like to do on a consistent basis, uh, around the world with people that’s doing awesome things and could use a little hand up every now and then.
21:16 spk_1
Last question, man,what’s next? What’s brewing? What you working on? What’s next for you and your enterprise?
21:23 spk_0
We have been brought into a few cap tables, capitalization tables whereWe can take ownership stakes in different businesses, sports teams, things of that nature. So, hopefully, I’ll say this lightly, we are looking to bring a WNBA team to Detroit. We wanna bring the women’s basketball back to Detroit.I’ll be keeping you guys updated on the progress with us doing that. Hopefully by 2027 or 2028, we will have another professional team, a women’s team, as that is the emerging asset class of those of us that’s investors,The sports world is another asset class that not a lot of us are in yet, but as we continue to break barriers, we’ll see more people come into and become minority owners in the team they support and that they know, like and love and grew up watching.
22:22 spk_1
That’s epic, man. Congrats, congrats.And guys, that’s it for this episode. I can’t say thanks enough to my dog, Chris, for actually joining us, but you guys know what to do, man. Like, subscribe, tell your auntie, tell your cousins, and until next week, make sure you guys continue to tune in. This is Financial Freestyle, only on Yahoo Finance.
22:44 spk_2
This content was not intended to be financial advice and should not be used as a substitute for professional financial services.